Kenya’s Shilling Strengthens as Central Bank Curbs Liquidity

Kenya’s shilling strengthened, reversing this week’s losses, as the central bank removed money supply through repurchase agreements.

The currency of East Africa’s biggest economy appreciated 0.6 percent to 83.10 per dollar as of 1:30 p.m. in the capital, Nairobi. The shilling has advanced 0.6 percent so far this week, its fourth week of gains.

The Central Bank of Kenya accepted The bank accepted all 1.45 billion shillings ($17.5 million) of bids it received for seven-day repurchase agreements, a bank official who declined to be named in line with the lender’s policy, said by phone.

In a repurchase agreement an investor agrees to sell a security to another trader, while at the same time arranging to buy it back at a future date and at a pre-determined price.

Tanzania’s shilling appreciated 0.5 percent to 1,590 against the dollar while the Ugandan shilling snapped a two day losing streak, gaining 0.3 percent to 2,320 per dollar.

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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