Shilling gains against the dollar following central bank receives cash

By professo

Due to the Central Bank of Kenya’s collection of injected cash the subdued dollar demand by importers, the shilling has now slightly firmed against the dollar.

The shilling trade has inflated against the dollar, reaching a high of 103.58, whereas last week it was at 103.60 on 10 November.

Although the rise is only small, it is very significant for Kenya, as its currency has recently been problematic.

According to Cytonn, a Nairobi-based investment firm, it is expected that the shilling will be steady for this week, following the actions of the bank – mopping liquidity from markets.

SEE ALSO:

“There was some (liquidity) improvement last week, but the central bank took it out,” a commercial bank trader commented. “The market is still tight now.”

Sh66.6bn (US$642mn) has been injected into the market from government payments and treasury securities redemptions, according to a weekly bulletin released by the Central Bank of Kenya.

The regulator’s open market operations, tax payments by companies, and issuance of government securities countered this money.

The Central Bank of Kenya accepted more bids than it previously had at last week’s auction, whilst, for the first tim in nine weeks, Treasury bills were oversubscribed.

Share
Share

Featured Articles

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

As Accenture predicts the metaverse will fuel a US$1 trilion commerce opportunity by 2025, we round up 10 pioneering metaverse projects in the UAE

PwC’s survey shows Middle East CEOs remain upbeat on growth

CEOs in the Middle East are far more optimistic about regional growth than those in North America and Europe, according to PwC’s annual survey

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy

5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwC

Leadership & Strategy

Survey: The Future of Cloud Security in the Middle East

Technology