News

Ksh25 billion excess liquidity in the market was mopped up yesterday by the Central Bank of Kenya (CBK) in an effort to help stabilize the shilling.
The bank uses term auction deposits and repurchase agreements to absorb liquidity, which makes it costly to hold onto dollars and in turn lends support to the shilling.
The shilling held steady with scarce dollar demand , a day after the bank injected dollars into the market to bolster the local currency as it neared its all-time low.


On Tuesday at about noon, the shilling slipped to 106.55/75 against the dollar, edging to its record low of 106.80 set in October 2011.
However on Wednesday, at 10:02 am, commercial banks quoted the shilling at 105.30/50 to the dollar, compared to Tuesday’s close of 105.35/50.
Yesterday’s morning intervention and necessary support enabled the shilling to be on a firmer setting throughout the day.
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