Tanzania’s financial markets closed the week to 25 September 2026 with the Interbank Cash Market 7-day Weighted Average Rate rising to 6.79%, up from 6.72% recorded at the close of the previous week.
The Bank of Tanzania (BOT) released the figures on 28 September 2026 in its fifth Domestic Financial Markets Weekly Report, a publication it launched on 2 September 2026 and now issues weekly.
The report consolidates foreign exchange market, money market and government securities data for the trading week running from 21 to 25 September 2026, alongside charts of monthly and fiscal-year trends.
Government Securities
The Treasury bills auction No. 1207 held on 23 September 2026 offered the 35, 91, 182 and 364-day tenors and attracted 128 bids, of which 92 were successful.
Investors tendered TZS 514.54 billion against an offered amount of TZS 388.70 billion, an oversubscription of TZS 125.84 billion, with the total allotment reaching TZS 365.90 billion.
The weighted average yields settled at 2.5215% for the 35-day tenor, 3.3872% for the 91-day, 5.2867% for the 182-day and 6.2852% for the 364-day.
The 91-day tenor drew the strongest relative demand with a bid-to-cover ratio of 1.67x, as investors tendered TZS 117.00 billion against the TZS 69.90 billion offered.
The 364-day tenor attracted the largest tender at TZS 270.54 billion against TZS 169.00 billion offered, producing a bid-to-cover ratio of 1.60x over the week.
By contrast the 35-day and 182-day tenors were undersubscribed, recording bid-to-cover ratios of 0.70x and 0.92x respectively against the amounts placed on offer.
Banks accounted for the entire auction, submitting 100.00% of subscriptions and taking 100.00% of the allotment worth TZS 365.90 billion, with no other investor category participating.
Outstanding Government Securities stood at TZS 33,342.80 billion, comprising Treasury bonds worth TZS 29,805.15 billion, or 89.39% of the total, and Treasury bills worth TZS 3,537.65 billion, or 10.61%.
Banks held the largest share of that stock at 33.70%, worth TZS 11,237.74 billion, followed by Pension Funds at 30.29%, worth TZS 10,101.11 billion.
Retail Investors held 17.55% worth TZS 5,851.07 billion, Collective Investment Schemes and other official entities 8.13% worth TZS 2,709.23 billion, and Insurance Companies 7.37% worth TZS 2,456.81 billion.
The Bank onboarded 2,424 new clients in the current fiscal year, lifting the total number of registered investors in government securities to 33,926.
The next government securities auction is scheduled for Wednesday 30 September 2026, when a 15-year Treasury bond will be offered in line with the issuance calendar.
Foreign Exchange Market
The shilling depreciated 0.16% over the week to close at TZS 2,645.45 against the US dollar, from TZS 2,641.34 at the end of the previous week.
Turnover on the Interbank Foreign Exchange Market (IFEM) rose to USD 44.80 million from USD 35.50 million recorded the previous week, a weekly increase of USD 9.30 million.
Retail foreign exchange transactions edged up to USD 542.93 million from USD 536.53 million a week earlier, spread across trade, energy and commodity related sectors.
Trade accounted for the largest share of retail turnover at USD 130.37 million, followed by Oil & Energy at USD 74.14 million and Mining at USD 62.67 million.
Agriculture recorded the sharpest sectoral increase, with turnover climbing to USD 57.96 million from USD 38.76 million as purchases rose to USD 50.10 million from USD 32.81 million.
Daily retail foreign exchange transactions averaged USD 130.16 million over the past month, with sales averaging USD 64.65 million and purchases averaging USD 65.51 million.
Against other currencies the shilling closed at TZS 3,498.87 to the British Pound Sterling, TZS 3,008.14 to the Euro, TZS 394.06 to the Chinese Yuan and TZS 20.42 to the Kenyan Shilling.
Money Market
The Interbank Cash Market (IBCM) 7-day Weighted Average Rate (WAR) closed the week at 6.79%, up from 6.72% recorded at the close of the previous week.
Total 7-day trading volume increased to TZS 867.55 billion from TZS 712.35 billion recorded in the preceding week, a rise of TZS 155.20 billion.
The 7-day weekly WAR averaged 6.56%, sitting 31 basis points above the Central Bank Rate (CBR) of 6.25% and inside the corridor of 4.75% to 7.75%.
The Bank injected TZS 341.48 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down sharply from TZS 852.00 billion injected in the preceding week.
Bank of Tanzania Monetary Policy Framework
BOT adopted an interest rate based monetary policy framework in January 2024, replacing the monetary targeting regime under which it had previously steered reserve money.
Under the framework the Central Bank Rate serves as the policy rate, while the 7-day interbank cash market rate is the operating target the Bank steers towards it.
The main instruments include repurchase agreements, 35-day and 91-day Treasury bills, the statutory minimum reserve requirement, and purchases or sales of foreign currency in the interbank market.
The Monetary Policy Committee set the Central Bank Rate at 6.25% for the third quarter of 2026, keeping the weekly operating target anchored within the 4.75% to 7.75% corridor.
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