While the EMS involves electronic infrastructure for foreign exchange transactions, it is primarily a foreign exchange market matching system rather than a payments-specific clearing or settlement infrastructure.
Cross-border payments may benefit indirectly from improved FX market efficiency, but the update focuses on FX market infrastructure rather than cross-border payment flows themselves.
Specialism
This update concerns foreign exchange market infrastructure and operational procedures in Tanzania with no direct connection to payment services regulation, compliance obligations, or the payment firm supervisory framework covered by the PC taxonomy.
While the EMS involves transaction matching and reporting, the content focuses on foreign exchange market mechanics rather than regulatory reporting obligations for payment service providers.
2026-05-05 07:50:29·rghosh@vixio.com
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TITLE: Tanzania's Bank of Tanzania Implements Electronic Matching System in Interbank Foreign Exchange Market
BODY:
On April 28, 2026, the Bank of Tanzania issued a directive to all commercial banks and non-bank institutions regarding the implementation of an Electronic Matching System (EMS) within the Interbank Foreign Exchange Market (IFEM). The EMS implementation forms part of the Bank's broader foreign exchange market reforms aimed at enhancing operational efficiency, transparency, and price discovery while promoting orderly market conduct.
The Bank of Tanzania has issued the Guidelines for Electronic Matching System, 2026, which align with Principle 43 of the IFEM Code of Conduct of 2024 regarding automated trade confirmation matching systems. Under these Guidelines, all licensed commercial banks in Tanzania automatically qualify as System Participants and are required to publish firm quotes and related volumes during trading hours from the effective date. All spot foreign exchange transactions within the IFEM involving Tanzanian shillings (TZS) and United States dollars (USD) must be conducted through the EMS. Non-bank institutions, including large exporters, are eligible to participate solely as foreign exchange sellers and must apply to the Bank of Tanzania for approval to trade on the platform, with approval granted upon confirmation of compliance with operational and regulatory requirements.
Additionally, the Bank of Tanzania has extended the IFEM market closing time from 09:00 a.m. to 03:00 p.m. to 09:00 a.m. to 04:00 p.m. (East African Time) to enhance efficiency and streamline operations.
The Guidelines for Electronic Matching System, 2026 take effect on May 18, 2026. Commercial banks and non-bank institutions must ensure compliance with all requirements outlined in the Guidelines, which are available on the Bank of Tanzania website.
THE UNITED REPUBLIC OF TANZANIA BANK OF TANZANIA In reply please quote: Ref. No IA.248/301/01/696 28th April 2026 To: All Commercial Banks and Non-bank Institutions RE: IMPLEMENTATION OF ELECTRONIC MATCHING SYSTEM IN THE INTERBANK FOREIGN EXCHANGE MARKET The captioned subject refers. 2. The Bank of Tanzania (the Bank), in the exercise of its mandate under the Bank of Tanzania Act, 2006, hereby informs all commercial banks and non-bank institutions (large exporters) of the implementation of the Electronic Matching System (EMS) within the Interbank Foreign Exchange Market (IFEM). 3. The implementation of the EMS is part of the Bank’s ongoing reforms in the foreign exchange market, which aim to enhance operational efficiency, transparency, and price discovery, and to promote orderly market conduct. The system aligns with the provisions of Principle 43 of the IFEM Code of Conduct of 2024 regarding automated trade confirmation matching systems for market participants. 4. In this regard, the Bank has issued the Guidelines for Electronic Matching System, 2026, which take effect on 18th May 2026. These Guidelines set out the rules and procedures for conducting interbank foreign exchange trading on the EMS platform. The Guidelines are available on the Bank of Tanzania website at the following link https://www.bot.go.tz/Publications/Filter/40. 1 16 Jakaya Kikwete Road, P. O. Box 2303, 40184 Dodoma – Tanzania, Email: governoroffice@bot.go.tz, Website: www.bot.go.tz, Telephone: +255 22 223 2541/2501 5. According to these Guidelines, all licensed Commercial Banks in Tanzania qualify as System Participants. Consequently, starting from 18th May 2026, banks are required to publish firm quotes and related volumes in the EMS during trading hours. All spot foreign exchange transactions within the IFEM involving TZS and USD shall be conducted through the EMS. 6. Non-bank institutions are eligible to participate in the EMS solely as foreign exchange sellers. Interested institutions may apply to the Bank for approval to trade on the EMS platform. Approval will be granted upon confirmation of compliance with all operational and regulatory requirements. 7. To enhance efficiency and streamline operations in the IFEM, the market closing time prescribed under the IFEM Code of Conduct of 2024 has been extended from 09:00 A.M.– 03:00 P.M. to 09:00 A.M.– 04:00 P.M. (EAT). 8. Please be guided accordingly. Emmanuel M. Tutuba GOVERNOR 2 16 Jakaya Kikwete Road, P. O. Box 2303, 40184 Dodoma – Tanzania, Email: governoroffice@bot.go.tz, Website: www.bot.go.tz, Telephone: +255 22 223 2541/2501