News

The shilling was little changed against the dollar last week, but was seen under pressure due to demand from importers and a general weakening emerging currencies against the dollar.
At 9:23 am on Friday, commercial banks quoted the shilling at 105.00/105.20 per dollar, barely changed from 104.95/105/15 on Thursday.
The shilling has been edging closer to its all time low of about 107 to the dollar, set in October 2011.
The Kenyan currency, down 16 percent this year, has come under pressure from a broad rally in the dollar, Kenya’s high current account deficit and poor tourism inflows after attacks by militants.


The Central Bank of Kenya has in the past few months periodically intervened in the market to support the currency by selling dollars. It also regularly mops up excess liquidity.
On Friday, CBK said it planned to mop Sh10bn in excess liquidity from the money markets.
The bank uses repurchase agreements and term auction as deposits, to soak up liquidity, making it costly to hold dollars and in turn giving the shilling support.
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