THE Bank of Tanzania (BoT) on Tuesday sold $15m through an auction to boost foreign exchange liquidity in the banking sector, at a weighted average exchange rate of 2,572.56/- per US dollar.

The BoT Directorate of Financial Markets said in a public notice that the auction was part of implementing its foreign exchange interventions policy of 2023, where a total of $27m was tendered by 30 bidding banks. 

However, only 18 bids valued at $15.75m were accepted, with the lowest bid at 2,570/- and the highest at 2,580/- per dollar, it said, affirming that the auction marks the second forex intervention within a week.

It follows the sale of $30m on February 6 at a weighted average rate of 2,564/- per US dollar, attracting 25 bids valued at $44.25m, of which only the equivalent of the offered amount was accepted, it stated.

BoT’s indicative forex rates for Tuesday showed a buying rate of 2,547.09/- and a selling rate of 2,572.56/- per US dollar, reinforcing its mid-year monetary policy statement for February.

It affirmed that the forex market was adequately liquid in the first half of 2025/26, supported by export receipts from gold, tourism and cashew nuts, leaving BoT to occasionally intervene to maintain orderly market conditions and appropriate liquidity levels.

Consistent with adequate forex liquidity, the shilling exhibited a general appreciation trend as in the interbank market the local currency appreciated by 5.52 percent in the first six months of 2025/26.

This compares with a 7.42 percent depreciation during the same period in 2024/25, with the retail exchange rate moving in tandem with the interbank rate, a reflection of increased confidence in the shilling, the directorate asserted.

Foreign exchange reserves remained strong, reaching $6,329m at the end of December 2025, up from $5,971.5m in June 2025, where monetary gold accounted for 13 percent of reserves, up from 1.0 percent earlier, he said. 

“These reserves are sufficient to cover at least 4.9 months of projected imports, exceeding the national benchmark of 4.0 months and the EAC minimum of 4.5 months,” it remarked.

The reserve position is expected to remain adequate, supported by domestic gold purchases and robust export performance particularly in gold and tourism, it added.