News

Treasury, October 6, 2015: By Joseph Kipkoech
The shilling has strengthened with support by rising yields on government securities and dollar sales by tea agencies paying to farmers.
At 8.42 am on Friday last week, banks quoted the shilling at 104.15/25 to the dollar, compared with Thursday’s close of 104.40/50.
Traders say a shortage of shilling liquidity has supported the shilling and kept overnight lending rate high at around 27 per cent this week up from 13 per cent in early September.


The Central Bank said it planned to mop up Ksh 8 billion ($76.89 million) in excess liquidity from the money markets.
“The shilling has strengthened, but I don’t know if we will get enough momentum to break 104,” said one dealer at a commercial bank.

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