Kenya Shilling Rallies as Central Bank Steps Up Repurchases
The currency of East Africa’s largest economy appreciated 0.4 percent to 83.70 per dollar as of 4:23 p.m. in Nairobi, the capital, gaining for a second day this week.
The Central Bank of Kenya sold 8.7 billion shillings ($104 million) of seven-day repurchase agreements at a weighted average yield of 8.623 percent, a central bank official, who asked not to be named in line with policy, said today. The bank sold 3.3 billion shillings in repos yesterday and 3 billion shillings on Aug. 13.
“The shilling has gained as we see central bank increasing the amount its curbing from the market,” Jeremiah Kendagor, head of trading at Nairobi-based Kenya Commercial Bank Ltd. (KNCB), said in a phone interview today.
The central bank also sold 1 billion shillings of 14-day term-auction deposits at 9 percent, the official said.
The Tanzanian shilling weakened 0.1 percent to 1,579 to the dollar, while Uganda’s shilling was little changed at 2,480.50 versus the U.S. currency.
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