Kenya Shilling Gains for Third Day as Bank Removes More MoneyJohnstone Ole Turana
Kenya’s shilling strengthened for a third day, giving the currency its biggest weekly gain in more than four months, as the central bank removed the largest amount of money from the market in more than a week.
The currency of East Africa’s biggest economy appreciated less than 0.1 percent to close at 87.28 per dollar, pushing the weekly rally to 0.4 percent, the most since the five days ended Oct 5, according to data compiled by Bloomberg.
The Central Bank of Kenya accepted all 8.7 billion shillings ($99 million) of bids for seven-day repurchase agreements, according to a central bank official, who asked not to be identified in line with policy, the most since Feb. 6. The bank, which uses the repos to reduce money supply and support the shilling, has absorbed 127 billion shillings from the market this year, according to data compiled by Bloomberg.
The local unit’s gains against the dollar have been helped by the central bank “mopping up liquidity,” Bernard Matimu, chief dealer at Nairobi-based NIC Bank Ltd. said in a note to clients.
Uganda’s currency closed unchanged at 2,640 per dollar, while the Tanzanian shilling was unchanged at 1,617 per dollar.