More Dollars Pumped in to Rescue Kenyan Shilling

More Dollars have been pumped into the market by the Central Bank of Kenya in an effort to prop the Kenyan Shilling after it hit 106 against the dollar.

There are reports that close to $30 million was introduced into the system as on Tuesday as CBK Governor Patrick Njoroge met banks chief executives to deliberate on the weakening local unit as well as putting mechanism that will prevent the shilling from hitting 107 as compared to the dollar.

Kenya is now grappling with a huge trade imbalance that has seen the country depend more on imports s a supplement, there is also a low yield from the short term T bills as well as from other host micro financial economic factors and the move by the CBK may just be short lived.

Financial experts have argued that the CBK’s move to dig deeper into its foreign exchange reserves may have been founded on the comfort that the $433 million precautionary facility was nearing its disbursement with the letter of intent already drawn last week.