Kenya’s Shilling Weakens Most in Month as Bank Redeems BillsSarah McGregor
Kenya’s shilling weakened for the first time in four days, heading for its biggest decline in almost a month, as the central bank settled matured securities and sold fewer repurchase agreements than it offered.
The currency of East Africa’s largest economy slid 0.4 percent to 87.64 per dollar by 4:32 p.m. in Nairobi, the most in a closing basis since Jan. 22, according to data compiled by Bloomberg.
Government bond redemptions of 17 billion shillings ($194 million) “came to maturity today which may have contributed” to the currency’s depreciation, Bernard Matimu, chief dealer at Nairobi-based NIC Bank Ltd., said by phone. Some demand by companies for dollars to pay bills may have also caused weakness, he said.
The government accepted all 13 billion shillings of bids for seven-day repurchase agreements at 9.434 percent, a central bank official, who asked not to be identified in line with policy, said by phone from Nairobi. The bank had offered 15 billion shillings of securities.
Uganda’s currency weakened for a second day, falling 0.5 percent to 2,655 per dollar, while Tanzania’s shilling declined 0.1 percent to 1,619.