BANKING | Bank of Tanzania Launches Electronic FX Matching System for Banks to Improve Transparency and Liquidity

The Bank of Tanzania (BoT) has launched an electronic matching system for the interbank foreign exchange market, aiming to modernise trading, improve transparency and strengthen price discovery in the country’s currency market, the central bank said on Tuesday.

The new Electronic Matching System (EMS) replaces a largely manual process in which commercial banks negotiated foreign exchange deals directly, often resulting in delayed execution and limited price visibility.

Under the platform, participating banks can now view bids and offers in real time with trades automatically matched based on market demand and supply, BoT said.

The central bank said the system is designed to reduce inefficiencies in foreign exchange trading, improve liquidity, and support a more rules-based and transparent market structure.

BoT officials said the rollout is part of broader financial market reforms intended to align Tanzania’s foreign exchange infrastructure with international best practice and strengthen investor confidence.

The platform currently supports spot transactions in Tanzanian Shillings against the U.S dollar, with settlements completed within two business days. The minimum transaction size has been set at $100,000, with trades required in fixed increments thereafter.

According to the central bank, 29 of Tanzania’s 32 commercial banks have already joined the system, with the remainder expected to complete onboarding shortly.

Large exporters will also be able to participate as non-bank market players while purchases of foreign currency will continue to be routed through commercial banks.

BoT officials said the system is expected to improve efficiency in price discovery and reduce market speculation as Tanzania continues broader financial sector reforms.

“The platform will strengthen price discovery and provide market participants with a fair and orderly trading environment,” a BoT official said, according to a statement.

The initiative follows a series of regulatory reforms, including updated foreign exchange market guidelines issued earlier this year.

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