The Kenya shilling has recorded another week of resilience against major global and regional currencies. According to recent Central Bank of Kenya disclosures, the shilling traded at KSh 131.17 on the week ending April 4....CONTINUE READING THE FULL ARTICLE>>>
According to the CBK, the US dollar traded at KSh 130.7443, the Sterling pound at KSh 165.7119, and the EURO at KSh 142.1060 as of Friday, March 5.
At its April 3, 2024 meeting, the Monetary Policy Committee (MPC) decided to maintain the Central Bank Rate (CBR) at 13.0%.
The MPC observed that previous measures had successfully mitigated inflation, alleviated exchange rate pressures, and stabilised inflationary expectations.
Speaking to TUKO.co.ke Daniel Kathali, an economist and lecturer at Mt. Kenya University, noted that the inflow of the US dollars from the recently issued Eurobond may have increased the supply of dollars in the market, thus reducing pressure on the shilling.
Additionally, he said that prudent management from the CBK has been central to the recovery of the Kenya shilling.
The CBK also reported that the usable foreign exchange reserves remained adequate at USD 7,148 million (3.8 months of import cover) as of April 4, almost equal to the amount reported in the last week ending March 28.
Kathali explained to TUKO.co.ke that the CBK is dealing with the laws of supply and demand, and if they take a huge amount of dollars from circulation into reserves, this could create a slight shortage in the market.
In other related news, NCBA managing director and CEO John Gachora argued that the shilling would record a fresh fall, but not to the previous low of KSh 160 per US dollar.
According to Gachora, the true value of the Kenya shilling lies between the current exchange rate and the historic low of KSh 160.
The Kenya shilling emerged as a top-performing currency globally, surpassing many counterparts, including the British Pound, according to a recent Bloomberg report…CONTINUE READING>>
