Tanzanian shilling remained stable against major currencies in January 2023 – BoT

The Tanzanian shilling remained stable against currencies of major trading partners in January 2023 consistent with moderate inflation rate, trading at an average rate of 2,320.64/- per US dollar, compared with 2,320.23/- per US dollar recorded in the preceding month.

According to the BoT Monthly Economic Review for February 2023, on annual basis, the shilling depreciated by 0.5 percent from 2,309.23/- per US dollar in January 2022.

At the same time, the real effective exchange rate appreciated by about 3.7 percent (yoy) at end-December 2022.

Meanwhile, the interbank foreign exchange market (IFEM) remained active, facilitating flow of foreign exchange liquidity across banks.

During the month, total transactions amounted to $48.5 million, compared with $46.8 million traded in the preceding month.

“The Bank of Tanzania continued to participate in the market by selling $21 million to meet the increased demand for imports,” the report said.