Kenya shilling to remain stable, helped by CBK intervention

By Soko Directory Team / July 24, 2017

Kenyan-Shilling Turnover

By Amina Faki

The Kenya Shilling remained stable during the week, to close at 103.9 shillings against the dollar cites Cytonn Investments investor brief note.

On a year to date basis, the shilling has depreciated against the dollar by 1.4 percent from 1.3 percent the previous week.

USD vs KES Exchange Rate

The performance of the shilling was mainly driven by

  1. The dollar demand by oil importers

  2. Inflows from horticulture

  3. Interbank rate increased

  4. Volumes traded decreased

  5. Central Bank was relatively active in the reverse repo market

Foreign reserves held at CBK continued its decline for the 12th consecutive weekly session, falling by USD 88Mn to end at USD 7.78Bn.

“The slide reflects the central bank efforts in shoring the local unit by market sale of greenbacks.” Genghis Analysts.

According to Cytonn Investments, the shilling should remain relatively stable in the short term, supported by CBK’s activity as can be seen by the decline in the forex reserve levels, currently at 7.8 billion US dollars (equivalent to 4.6 months of import cover), compared to 8.3 billion US dollars (equivalent to 5.3 months of import cover) at its peak, at the end of May 2017.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team



Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (221)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (174)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (244)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950