Kenya Shilling Gains as Bank Removes More Money From Market
Kenya’s shilling gained for the first time this week as the central bank accepted more bids than it had offered for repurchase agreements.
The currency of East Africa’s biggest economy gained as much as 0.3 percent as the Central Bank of Kenya accepted 3.9 billion shillings ($44 million) of bids for seven-day repurchase agreements, having offered 2 billion shillings. The bank uses the repos to reduce total money supply and support the shilling.
“The shilling has gained on tight liquidity as the central bank continues to remove money from the market,” Joshua Anene, a currency dealer at Nairobi-based Commercial Bank of Africa Ltd., said by phone.
The shilling strengthened to as much as 87.35 per dollar and traded 0.2 percent up at 87.48 as of 3:31 p.m. in Nairobi. The currency has retreated 0.3 percent this week.
Trading levels today are likely to be around 87.40 per dollar to 87.80, Nairobi-based NIC Bank Ltd. said in a note to clients.
Uganda’s currency weakened less than 0.1 percent to 2,651.50 per dollar, while the Tanzanian shilling rallied less than 0.1 percent to 1,615 per dollar.
To contact the reporter on this story: Johnstone Ole Turana in Nairobi at email@example.com
To contact the editor responsible for this story: Antony Sguazzin at firstname.lastname@example.org