The Bank of Tanzania dumped 15 million bucks into the foreign exchange market to stop things from getting weird with liquidity. The central bank ran an auction where commercial banks went hard trying to grab dollars, and the clearing rate landed at 2,449.18 shillings per greenback.
Nineteen banks showed up to bid, but the demand was wild. They wanted 17 million total, even though the central bank only planned to sell 10 million at first. The BoT ended up allocating 15 million to 17 different banks that cut. The highest bid hit 2,450 shillings while the lowest accepted offer scraped in at 2,443.50.
The central bank keeps saying these moves are about smoothing out volatility, not locking down the exchange rate. They want the market to do its thing while keeping the financial system from going off the rails.
Nineteen banks showed up to bid, but the demand was wild. They wanted 17 million total, even though the central bank only planned to sell 10 million at first. The BoT ended up allocating 15 million to 17 different banks that cut. The highest bid hit 2,450 shillings while the lowest accepted offer scraped in at 2,443.50.
The central bank keeps saying these moves are about smoothing out volatility, not locking down the exchange rate. They want the market to do its thing while keeping the financial system from going off the rails.
