Trade drives banking retail forex turnover as mining activity slows

By Guardian Reporter , The Guardian

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Forex

Trade-related transactions dominated Tanzania’s retail foreign exchange market in the week ending October 9, generating $174.70 million in turnover as total activity eased slightly amid lower transactions in the oil and energy and mining sectors.

The Bank of Tanzania’s (BoT) Domestic Financial Markets Weekly Report for October 5–9, 2026, shows that trade accounted for the largest share of retail foreign exchange transactions, followed by oil and energy at $74.18 million and mining at $59.31 million.

Combined, the three sectors generated $308.19 million, equivalent to about 57.7 percent of the total retail foreign exchange turnover of $533.81 million recorded during the week.

The figures highlight the importance of trade, energy and mineral production in driving demand for foreign currencies within the domestic economy, particularly as businesses meet international payment obligations and manage proceeds from exports.

Despite the dominance of the three sectors, total retail foreign exchange transactions declined from $536.19 million in the preceding week, reflecting a modest slowdown in activity.

Trade recorded the strongest performance among the major sectors, with turnover increasing from $130.98 million in the previous week to $174.70 million. The increase of $43.72 million represents growth of approximately 33.4 percent.

The expansion was driven primarily by sales, which rose from US$90.01 million to $130.40 million. Purchases also increased, from $40.96 million to $44.30 million.

The figures show that sales represented nearly three-quarters of trade-related foreign exchange turnover during the reporting week, indicating a substantial volume of transactions on the selling side of the market.

Oil and energy, meanwhile, recorded turnover of $74.18 million, down from $78.32 million in the previous week. Sales increased from $48.66 million to $66.37 million, while purchases dropped sharply from $29.67 million to $7.81 million.

The divergent movements suggest that the composition of transactions in the sector changed considerably during the week, although the report does not identify the underlying commercial or payment-related factors.

Mining experienced a more pronounced decline, with turnover falling from $70.69 million to $59.31 million, a decrease of approximately 16.1 percent.

Purchases declined from $64.58 million to $50.82 million, while sales increased from $6.11 million to US$8.49 million.

Mining remained the third-largest sector in the retail foreign exchange market, but its lower turnover contributed to the overall decline in transactions across the market.

Agriculture was another notable contributor, recording turnover of $46.62 million, up from US$39.12 million in the preceding week. The increase of $7.50 million represented growth of approximately 19.2 percent.

Purchases rose from $32.79 million to $38.64 million, while sales increased from $6.33 million to $7.98 million.

The performance placed agriculture ahead of individual retail customers, whose transactions totalled $41.07 million, compared with $38.57 million in the previous week.

Transactions involving individual retail customers were relatively balanced, with purchases amounting to US$20.31 million and sales reaching US$20.76 million.

Manufacturing recorded turnover of $35.69 million, down from $46.87 million in the previous week. Purchases declined from $9.84 million to $4.79 million, while sales fell from $37.04 million to $30.90 million.

Transport and communication generated $34.94 million, compared with $39.49 million previously. Tourism turnover also declined to US$24.12 million from $28.53 million.

Transactions related to construction machinery and equipment fell to $21.14 million from $24.62 million, while social services recorded $10.20 million, down from $25.50 million.

Non-governmental organisations generated $7.13 million, compared with $10.87 million in the preceding week. Breweries and beverages recorded $4.70 million, against $2.62 million previously, with the latest transactions consisting entirely of sales.

Overall, purchases across the retail foreign exchange market fell to $234.93 million from $286.35 million, while sales increased to $298.87 million from $249.84 million.

This shift meant that sales accounted for approximately 56 percent of total turnover during the week, compared with about 47 percent in the previous reporting period.

The change in the balance between purchases and sales is significant for understanding the market’s immediate transaction patterns.

Over the preceding month, daily retail foreign exchange transactions averaged $125.52 million, with purchases averaging $62.79 million and sales averaging $62.73 million, according to the central bank.