Tanzania’s financial sector is showing renewed appetite for foreign currency as banks oversubscribed the Bank of Tanzania’s latest $25 million forex auction. The intervention, carried out to stabilise the shilling and maintain orderly market conditions, drew bids well above the offer, a signal of persistent demand for dollars across the banking system.
The central bank has been stepping in frequently in recent months to calm volatility driven by import pressures and tighter global liquidity. Officials say the repeated oversubscriptions reflect both strong market participation and the urgency among banks to secure forex for clients, especially in sectors such as manufacturing, energy and trade.
Analysts note that BoT’s steady interventions are helping anchor expectations and reduce sharp swings in the exchange rate. By supplying measured amounts of foreign currency, the regulator is reinforcing confidence while keeping speculative behaviour in check.
The oversubscription trend also points to ongoing structural demand for dollars, suggesting that more interventions may follow as the economy navigates seasonal import cycles and external shocks.
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