As of February 2025, Tanzania’s gross official foreign reserves stood at USD 5,450.5 million, slightly down from USD 5,528.1 million in January, reflecting a 1.4% monthly decrease. Despite this dip, the reserves remained robust, covering 4.9 months of projected imports of goods and services, which is well above the East African Community benchmark of 4.5 months. This solid reserve position highlights the country's resilience to external shocks and its ability to stabilize the exchange rate and support key economic activities.

Tanzania Monthly Economic Review – March 2025, the foreign currency reserves of Tanzania remain adequate and stable, ensuring the country’s ability to support import needs and stabilize the shilling when needed.

 Tanzania’s Foreign Currency Reserves – February 2025

Reserve Level:

• Gross Official Reserves (February 2025):
  ➤ USD 5,450.5 million (USD 5.45 billion)

Import Cover:

• These reserves are sufficient to cover about 4.9 months of projected imports of goods and services, which is above the East African Community (EAC) benchmark of 4.5 months.

Comparison:

➤ Change:

• Reserves declined slightly by USD 77.6 million (≈1.4%), likely due to external debt repayments or forex interventions to stabilize the shilling.

What This Tells Us:

1. Reserves Remain Healthy:
   Even with the slight decline, reserves are still well above the regional safety threshold, meaning Tanzania can comfortably meet its import and external payment needs.
2. Buffer Against Shilling Volatility:
   The Bank of Tanzania has enough reserves to intervene in the forex market when needed, which helps explain the stable TZS/USD exchange rate despite higher demand for USD.
3. Macroeconomic Stability Signal:
   Sustained reserves above 4.5 months of import cover signal strong external sector management and improve investor confidence.

✅ Bottom Line:

Tanzania’s foreign currency reserves stood at USD 5.45 billion in February 2025, enough for 4.9 months of imports, underscoring the country's resilience to external shocks and its capacity to support economic stability.