RenCap Says Kenya's Shilling Overvalued Amid High Rates

Updated on
  • Twin deficits adding pressure on currency as spending rises
  • Inflows to support Kenya's currency are there: RenCap analysts

Renaissance Capital said Kenya’s high interest rates are holding the country’s currency at a stronger level than it should be, undermining the investment bank’s view that the shilling has to depreciate almost 50 percent against the dollar to reach fair value.

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