Kenya Central Bank Intervenes With Dollar Sales to Back Shilling

The Central Bank of Kenya sold an unspecified amount of dollars to support the local currency, Bernard Omenda, head of treasury at Equatorial Commercial Bank Ltd. said, helping to end three days of losses.

Joseph Tirop, head of the foreign exchange department at the central bank, based in the capital of Nairobi, declined to comment when contacted by phone on Wednesday.

The shilling strengthened 0.5 percent to 101.75 against the dollar as of 11:46 a.m. local time. The currency has weakened 11 percent this year, falling to 103.71 on July 13, the lowest level since October 2011.

A drop in tourism earnings and sliding tea production are hurting Kenya’s largest sources of foreign exchange at the same time as the U.S. dollar strengthens with the Federal Reserve moving closer toward increasing interest rates.

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