00 — OVERVIEWThe Week in One Page
Stability in price, thinness in volume. The shilling held at TZS 2,640.44 (−0.01% change in the BoT mean rate) while interbank FX turned over only USD 19.10 million against USD 58.50 million the week before. Retail FX fell 15.3% to USD 604.10 million, with mining purchases roughly halving.
Liquidity was ample and rates drifted toward the policy rate. The 7-day interbank rate closed at 6.38% and averaged 6.33%, 8 bps above the 6.25% Central Bank Rate (CBR); the BoT injected TZS 774.96 billion through 7-day reverse repo.
Banks dominated the short end of the bond market. Outstanding government securities are TZS 34,377.78 billion, 90.08% in bonds. At the 2-year auction banks took 98.9% of the allotment, and yields were lower than at the previous auction of the same tenor.
Daily IFEM Turnover: This Week vs Last Week (USD million)
Week-on-Week Change in Key Indicators (%)
| Indicator | Previous week | This week | Change |
|---|---|---|---|
| TZS per USD (mean rate) | 2,640.73 | 2,640.44 | −0.01% |
| IFEM turnover (USD m) | 58.50 | 19.10 | −67.4% |
| Retail FX turnover (USD m) | 713.39 | 604.10 | −15.3% |
| 7-day IBCM volume (TZS bn) | 670.05 | 758.65 | +13.2% |
| IBCM closing rate (%) | 6.55 | 6.38 | −17 bps |
| Reverse repo injected (TZS bn) | 768.20 | 774.96 | +0.9% |
| 2-year bond yield (%) | 8.4033 | 8.0919 | −31 bps |
Table 1. Source: BoT; changes are TICGL calculations. The 2-year comparison is with the previous auction of the same tenor.
01 — EXCHANGE RATES & FXA Flat Dollar Rate, Moves in Cross-Rates, and a Thin Interbank Market
The shilling appreciated marginally to TZS 2,640.44 per USD from 2,640.73. Against other majors the picture was mixed: sterling and the euro strengthened against the shilling by 1.06% and 0.89%, the yuan and yen weakened slightly.
| Currency (TZS per unit) | 30 Oct | 6 Nov | Change |
|---|---|---|---|
| British Pound Sterling | 3,516.66 | 3,553.77 | +1.06% |
| Chinese Yuan | 396.39 | 395.94 | −0.11% |
| Euro | 2,937.55 | 2,963.63 | +0.89% |
| Indian Rupee | 27.7184 | 27.9456 | +0.82% |
| Japanese Yen | 16.7082 | 16.6632 | −0.27% |
| Kenyan Shilling | 20.2977 | 20.3111 | +0.07% |
| Rwandan Franc | 1.7827 | 1.7820 | −0.04% |
| Ugandan Shilling | 0.6071 | 0.6520 | +7.40% |
| US Dollar | 2,640.73 | 2,640.44 | −0.01% |
Table 2. Source: BoT. Positive = foreign currency buys more shillings. The +7.40% Ugandan shilling move is far larger than any other and is worth verifying against the BoT series before it is quoted.
Weekly Change in Mean Rates Against the Shilling (%)
Interbank Foreign Exchange Market (IFEM)
IFEM transactions fell to USD 19.10 million from USD 58.50 million. Daily turnover peaked at USD 5.60 million on Tuesday and dropped to USD 1.20 million on Thursday. The monthly series shows how thin November is so far (a partial month) against the 2026 run of USD 64.6 to 227.1 million.
Monthly IFEM Turnover, 2026 (USD million)
IFEM Turnover by Year-Month, 2025 vs 2026 (USD million)
Retail Foreign Exchange Market
Retail turnover decreased to USD 604.10 million from USD 713.39 million (−15.3%). Trade (USD 164.80 million), mining (77.23) and agriculture (75.06) contributed USD 317.09 million, or 52.5% of the total (TICGL calc.). Daily retail turnover averaged USD 132.91 million over the past month (sales 63.68, purchases 69.23). Commercial banks bought USD 310.32 million and sold USD 293.77 million, a net purchase of USD 16.55 million, against USD 60.11 million the week before (TICGL calc.).
Retail FX Turnover by Sector (USD million)
| Sector | Purchases | Sales | Total (this wk) | Total (prev wk) | Change |
|---|---|---|---|---|---|
| Trade | 71.12 | 93.68 | 164.80 | 201.33 | −18.1% |
| Mining | 58.54 | 18.70 | 77.23 | 150.96 | −48.8% |
| Agriculture | 62.40 | 12.65 | 75.06 | 61.52 | +22.0% |
| Oil & Energy | 6.37 | 64.00 | 70.37 | 69.10 | +1.8% |
| Transport & Communication | 28.48 | 16.91 | 45.39 | 49.72 | −8.7% |
| Individual Retail Customers | 23.12 | 21.95 | 45.07 | 47.00 | −4.1% |
| Manufacturing | 7.59 | 33.70 | 41.30 | 53.30 | −22.5% |
| Construction (Machine & Equip.) | 16.28 | 14.41 | 30.69 | 33.09 | −7.3% |
| Tourism | 19.60 | 2.75 | 22.35 | 19.53 | +14.4% |
| NGOs | 10.50 | 4.08 | 14.57 | 6.81 | +114% |
| Social Services | 6.07 | 7.69 | 13.76 | 17.13 | −19.7% |
| Breweries/Beverages | 0.24 | 3.27 | 3.51 | 3.91 | −10.2% |
| Total | 310.32 | 293.77 | 604.10 | 713.39 | −15.3% |
Table 3. USD million. Purchases/sales and "this week" totals from BoT; previous-week totals from BoT; changes are TICGL calculations.
Commercial Banks: Purchases vs Sales of FX (USD million)
02 — MONEY MARKETInterbank Rates Eased Toward the Policy Rate as Volumes Rose
The 7-day Interbank Cash Market (IBCM) weighted average rate (WAR) closed at 6.38%, down from 6.55%. Total 7-day volume rose to TZS 758.65 billion from TZS 670.05 billion. The weekly average WAR of 6.33% sits inside the CBR corridor of 4.75% to 7.75%, 8 bps above the 6.25% CBR, consistent with the Bank's stance.
This Week: IBCM Volume and Rate
Previous Week: IBCM Volume and Rate
Daily WAR vs the Central Bank Rate and Corridor (%)
7-Day Reverse REPO
Through main operations the Bank injected TZS 774.96 billion at the CBR of 6.25%, up from TZS 768.20 billion (+0.9%, TICGL calc.). Reverse repo injections (TZS 775 billion) were about equal to total 7-day interbank volume (TZS 758.65 billion), so the central bank remained a core source of short-term funding.
Liquidity Snapshot: Interbank Volume vs Reverse Repo (TZS billion)
03 — GOVERNMENT SECURITIESA Bond-Heavy, Bank-and-Pension-Held Market, and Six Auctions Compared
Outstanding government securities stand at TZS 34,377.78 billion: Treasury bonds TZS 30,966.42 billion (90.08%) and Treasury bills TZS 3,411.36 billion (9.92%). In the current fiscal year 4,549 new clients were onboarded, taking registered clients to 36,051.
| Investor category | TZS bn | Share |
|---|---|---|
| Banks | 11,678.76 | 33.97% |
| Pension Funds | 10,278.63 | 29.90% |
| Retail Investors | 6,151.39 | 17.89% |
| CIS and Other Official Entities | 2,777.70 | 8.08% |
| Insurance Companies | 2,522.51 | 7.34% |
| Others | 968.79 | 2.82% |
| Total | 34,377.78 | 100% |
Holders by Investor Category (%)
Table 4. Source: BoT. Banks and pension funds together hold 63.87% (TICGL calc.), which frames how much of the stock is in institutional hands.
The 2-Year Treasury Bond (No. 712), Auctioned 4 November
The auction drew 75 bids (44 successful) for TZS 394.94 billion against TZS 138.95 billion offered; TZS 136.94 billion was allotted. Minimum successful price was 101.3949, weighted average price 102.2098 and the weighted average yield-to-maturity 8.0919%, against 8.4033% at the previous 2-year auction (−31 bps). Banks accounted for 52.92% of subscriptions and 98.9% of allotment (TZS 135.44 billion); collective investment schemes bid 44.34% but received nothing; insurers took TZS 1.50 billion (1.1%).
2-Year Auction: Share of Subscriptions vs Allotment (%)
Recent Auctions Across the Curve
| Bond | Redemption | Offered (TZS bn) | Tendered | Allotted | Bid-to-cover | WAY (%) | Coupon yld (%) |
|---|---|---|---|---|---|---|---|
| 2-yr No. 712 | 30-Jul-28 | 138.95 | 394.94 | 136.94 | 2.84x | 8.09 | 9.29 |
| 5-yr No. 700 | 30-Apr-31 | 145.63 | 398.06 | 143.57 | 2.73x | 9.53 | 9.99 |
| 10-yr No. 711 | 23-Jul-36 | 182.90 | 364.96 | 149.60 | 2.00x | 10.69 | 10.89 |
| 15-yr No. 696 | 19-Feb-41 | 207.27 | 504.13 | 196.51 | 2.43x | 10.79 | 11.08 |
| 20-yr No. 710 | 09-Jul-46 | 363.01 | 1,033.09 | 336.62 | 2.85x | 10.52 | 10.73 |
| 25-yr No. 722 | 16-Oct-51 | 414.19 | 2,495.06 | 610.61 | 6.02x | 10.84 | 10.96 |
Table 5. Source: BoT (Table 5 of the report), ordered by tenor. The report prints the under/oversubscription line in brackets (negative) even where tendered exceeds offered, and the 2-year line shows (258.00) while the text gives TZS 255.99 billion oversubscribed; we use tendered and offered amounts directly. Allotted totals TZS 1,573.85 billion across the six bonds (TICGL calc.).
Yield to Maturity by Tenor (Auction WAY, %)
Bid-to-Cover Ratio by Tenor (x)
Offered, Tendered and Allotted by Tenor (TZS billion)
Wednesday 11 November 2026: a 10-year Treasury bond, per the issuance calendar. The previous 10-year (No. 711) had the lowest bid-to-cover of the six (2.00x) at a 10.69% weighted average yield.
04 — READING THE WEEKWhat the Numbers Suggest, and What to Watch
- Price stability is not volume stability. A flat rate on USD 19.1 million of IFEM turnover says less than the same rate on a USD 150-200 million month. The retail market (USD 604 million) did most of the work.
- Mining flows are the swing factor. Mining purchases of USD 58.54 million were less than half the previous week's USD 136.98 million; the sector explains a large part of the retail decline.
- Policy transmission looks smooth. Daily WAR stayed between 6.10% and 6.44% against a 6.25% CBR, with reverse repo supplying liquidity at the policy rate.
- Short-end yields fell, concentration rose. The 2-year yield dropped 31 bps while banks took 98.9% of the allotment. Banks and pension funds hold 63.87% of all outstanding paper, which is relevant to the wider crowding-out debate.
- Demand is strongest at the long end. The 25-year bond drew TZS 2,495 billion of bids for TZS 414 billion offered.
This is one week of data. Weekly changes in thin markets can reverse. Some derived figures (net purchases, sector changes, shares) are TICGL arithmetic and are marked as such; interpretation is TERI's, not the BoT's. For research and information only; not investment, legal, tax or financial advice.
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What We Do →TERI Research →Invest in Tanzania →✉️ economist@ticgl.com05 — SOURCESSources & Data Notes
- Bank of Tanzania (2026), Domestic Financial Markets Weekly Report, 02–06 November 2026: Tables 1–5 and Charts 1–10.
- Monthly IFEM data for 2025 are read from Chart 3 of the report; 2026 November is a partial month.
- "TICGL calc." marks percentage changes, shares, net positions and sums derived by TERI from published figures.
06 — QUICK ANSWERSFrequently Asked Questions
What was the TZS/USD exchange rate on 6 November 2026?
TZS 2,640.44 per USD, a 0.01% appreciation from TZS 2,640.73.
What was the interbank cash market rate?
The 7-day rate closed at 6.38% (6.55% the week before) and averaged 6.33%, 8 bps above the 6.25% Central Bank Rate.
How did the 2-year Treasury bond auction go?
TZS 394.94 billion was tendered for TZS 138.95 billion offered; TZS 136.94 billion was allotted at an 8.0919% yield, down from 8.4033%. Banks received 98.9% of the allotment.
When is the next government securities auction?
Wednesday 11 November 2026, a 10-year Treasury bond.
Muhtasari kwa Kiswahili
Masoko ya Fedha ya Ndani ya Tanzania, 2–6 Novemba 2026 (chanzo: Benki Kuu ya Tanzania).
Shilingi: ilifungwa TZS 2,640.44 kwa USD, bila mabadiliko makubwa (asilimia 0.01 juu). Pauni ya Uingereza iliongezeka asilimia 1.06 na Euro asilimia 0.89 dhidi ya shilingi; shilingi ya Uganda iliripotiwa kupanda asilimia 7.40, takwimu inayopaswa kuhakikiwa.
Soko la fedha za kigeni: mauzo ya soko la ndani ya benki (IFEM) yalishuka hadi USD milioni 19.10 kutoka milioni 58.50 (asilimia 67.4 chini). Soko la rejareja lilishuka hadi USD milioni 604.10 kutoka milioni 713.39; sekta za biashara, madini na kilimo zilichangia USD milioni 317.09. Ununuzi wa madini ulishuka kutoka USD milioni 136.98 hadi 58.54.
Soko la fedha: kiwango cha wastani cha siku 7 kati ya benki kilifungwa asilimia 6.38 (6.55 wiki iliyopita), kikiwa kwenye ukanda wa asilimia 4.75 hadi 7.75, pointi 8 juu ya Kiwango cha Benki Kuu (asilimia 6.25). Kiasi kilipanda hadi TZS bilioni 758.65 na BoT iliingiza TZS bilioni 774.96 kupitia Reverse REPO.
Dhamana za Serikali: dhamana zilizobaki ni TZS bilioni 34,377.78 (hatifungani asilimia 90.08, hati fungani za muda mfupi asilimia 9.92). Benki zinashikilia asilimia 33.97, mifuko ya pensheni asilimia 29.90. Hatifungani ya miaka 2 (Na. 712) ilipata mavuno ya asilimia 8.0919 (8.4033 awali); benki zilipewa asilimia 98.9 ya kiasi kilichotolewa. Mnada ujao: Jumatano, 11 Novemba 2026, hatifungani ya miaka 10.
Chanzo: Benki Kuu ya Tanzania; hesabu za TICGL/TERI. Kwa maelezo zaidi: economist@ticgl.com.