Kenya Shilling Strengthens as Central Bank Increases Bond Sales
The currency of East Africa’s biggest economy appreciated as much as 0.3 percent to 85.85 per dollar and traded 0.1 percent stronger at 86 by 1:02 p.m., in Nairobi, the capital.
“The shilling has gained due to the central bank’s decision to remove money from the market through the acceptance of more bids at sale of securities and the regular daily mop- up,” Julius Kiriinya, a dealer at Nairobi-based African Banking Corp., said by telephone.
The Central Bank of Kenya accepted 20.78 billion shillings ($242 million) of bids for two-year Treasury bonds at a sale yesterday, having offered 15 billion shillings, it said in an e- mailed statement. The bank sold 2.75 billion shillings in six- month treasury bills. The bank is offering 4 billion shillings of three-month treasury bills today.
The bank also offered 10 billion shillings in seven-day repurchase agreements, an official who asked not to be identified in line with policy, said by phone.
The Ugandan shilling weakened 0.2 percent to 2,649.50 a dollar, while Tanzania’s shilling appreciated 0.3 percent to 1,592 a dollar.
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