News

The Central Bank of Kenya (CBK) has planned to mop up Kshs.12 billion in excess liquidity from the money markets.
The bank uses the term auction deposits and repurchase agreements to absorb the liquidity, which makes it costlier for banks to hold dollars and helps to support the shilling.


As the CBK went out to mop up the liquidity, the Kenya shilling was unchanged, with traders expecting it to trade in a tight range through the session.
At 0715 GMT last Friday, the 16th October 2015, commercial banks posted the shilling at 103.00/10 to the dollar, unchanged from last Thursday’s close.  “There has been no change overnight, it is a dead market,” said a trader at one Nairobi-based commercial bank.  “We expect trading between 103 and 103.20 all day.”
He added that the shilling, down about 14 per cent against the dollar this year, was unlikely to strengthen much as some companies had orders to buy dollars as soon as the local currency dipped below the 103 level.