DEMONITISATION

Shilling remains stable on old Sh1,000 note deadline

Shilling remained stable against the dollar despite experts predicting its depreciation.

In Summary

• According to Central Bank's data, commercial banks quoted the shilling at an average of 103.89 against the dollar, compared to a closing average of 103.82 on Friday.

• The Google trader quoted the shilling at 103.86.

The new look Kenyan currency notes.
The new look Kenyan currency notes.
Image: ENOS TECHE

The Kenyan Shilling remained stable against the dollar on the last day of demonetisation, despite experts predicting its depreciation.

According to Central Bank's data, commercial banks quoted the shilling at an average of 103.89 against the dollar, compared to a closing average of 103.82 on Friday.

The Google trader quoted the shilling at 103.86.

 

The stability beats prediction by experts that the currency may lose its stability held since the announcement of phasing out the old Sh1,000 banknote by today.

A report by Renaissance Capital released this month stated that the shilling would lose this year, closing at 105 against the greenback.

“The Kenyan Shilling remained stable against major international and regional currencies during the week ending September 26. It exchanged at Sh103.86 per US dollar on September 26, compared to Sh103.91 on September 19,” Central Bank of Kenya's weekly bulletin showed.

On June 1, the CBK Governor Patrick Njoroge announced the new generation notes were aimed at fighting money laundering, counterfeiting and corruption by forcing those with stashes of cash from illegal profits into a corner.

Previously trading at 101.00 units, the shilling has been on the depreciating curve since then the announcement, trading at 104.21 in July 31.

Njoroge has also said the bulk of the notes were exchanged in the first two weeks after the announcement.

It traded low at 99.599 on March 1.


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