Kenya Shilling Gains to Pare Quarterly Retreat on Tighter Supply
The currency of East Africa’s largest economy appreciated 0.3 percent to 84.10 by 2:18 p.m. in Nairobi, the biggest gain on a closing basis since June 20, trimming its depreciation in the second quarter to 1.6 percent.
Kenya tightened supply by accepting 3.5 billion shillings ($41.6 million) of bids for repurchase agreements maturing in seven days at a weighted average rate of 17.525 percent, a central bank official who asked not to be named in line with policy said today. Bids received totaled 12.3 billion shillings. The sale today is the second auction after the bank stayed out for five days since June 20 through June 26, according to data compiled by Bloomberg.
The bank also accepted 3 billion shillings of bids for 28- day term-auction deposits at 17.49 percent, 250 million shillings for 21-day TADs at 17.5 percent and 250 million shillings for 14-day TADs at a weighted average rate of 17.25 percent, the official said.
Longer-tenure term auction deposits have been introduced “as an additional instrument for liquidity management,” the bank said June 5.
Tanzania’s shilling weakened 0.1 percent to 1,572.50 per dollar, cutting its appreciation in the second quarter to 1.2 percent. Uganda’s shilling gained for the first time in five days, up 0.2 percent to 2,467.90 per dollar, increasing its advance in the three months to 1.6 percent.
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