Kenya’s Shilling Significantly Appreciates Against American Dollar
Nairobi — The Kenyan shilling has significantly strengthened against the American dollar amid an inflow of greenback from global lenders as well as the buyback of the Eurobond by the government.
A spot check by Capital Business shows that Equity Bank is buying one dollar for Sh135.8 and selling at Sh140.8.
Stanbic Bank is also buying a similar amount at Sh135 and selling it at Sh145.
Major forex bureaus in Nairobi also indicate that the local unit has improved against the USD.
Satellite Forex Bureau is buying one USD at Sh135 and selling at Sh147, with Sky Forex Bureau quoting the same amount at Sh120 (buying) and Sh148 (selling).
The dramatic appreciation of the Kenyan currency against the USD comes after the state got $1.5 billion to repay the previous Eurobond that matures on June 24, 2024.
The buyback of part of Europe has eased fears among investors, attracting investment into the country.
Likewise, the Board of the International Monetary Fund (IMF) has approved $942.2 million for Kenya under the Extended Fund Facility (EFF) as well as the Extended Credit Facility (ECF).
Immediately, Kenya accessed $624.5 million from the facility.
On Wednesday last week, during the monthly post-Monetary Policy Committee (MPC), CBK Governor Kamau Thugge said that the stabilization of the local currency had gained momentum.
“The Kenyan shilling has been stable for the last few days and as CBK we expect this stability to continue because we have taken action to raise the Central Bank Rate higher from 12.5 per cent to 13 per cent,” Thugge said.
Since Shilling has overshot its intended equilibrium target range, the apex bank added that it is focused on protecting the local unit from further declines in value.
By Capital FM.
