TANZANIA, Oct. 20 -- THE interbank cash market recorded a decline in transaction volumes in August, even as the average interest rate edged higher highlighting changes in shortterm funding activity among commercial banks.

The latest Bank of Tanzanias September 2026 Monthly Economic Review shows that total interbank cash market transactions fell from 5.63tri/- in July to 4.57tri/- in August.

The market facilitates short-term lending and borrowing between banks to manage their liquidity needs.

The decline represents a 18.8 per cent reduction in turnover, suggesting that banks traded smaller volumes of funds through the market during the month.

Despite the lower transaction volume, the average interbank cash market rate increased slightl...