Why Tanzania central bank stepped back from forex market
There has been reduced participation of the central bank in the Interbank Foreign Exchange Market (IFEM) as foreign exchange liquidity improves among commercial banks. PHOTO | FILE
Josephine Christopher is a senior business journalist for The Citizen and Mwananchi newspapers
Mwananchi Communications Limitted
Dar es Salaam. Bank of Tanzania (BoT) data shows that there has been reduced participation of the central bank in the Interbank Foreign Exchange Market (IFEM) as foreign exchange liquidity improves among commercial banks.
BoT actively participated in the market between January 2023 and October 2023, selling substantial sums of dollars to address growing pressure on foreign exchange caused by high global commodity prices.
