CURRENCY

Shilling drops to three-month low on coronavirus

Kenyan currency has been shedding almost 10 points since the start of the week.

In Summary
  • The Kenyan Shilling reached an all-time high of 106.80 in October, 2011 and a record low of 60.35 in November, 2007.
  • The CBK's plan to buy $100 million every month till June ostensibly to solidify its FX buffer against global volatility worsened by the advent of novel coronavirus
The new look Kenyan currency notes.
The new look Kenyan currency notes.
Image: ENOS TECHE

The shilling on Thursday hit a three-month high of 102.90 in a downwards trend exhibited since Monday when the Central Bank of Kenya announced to buy and stock dollar reserve.

The Kenyan currency, which in September was hailed as among stable currencies in the world by global investment bank Renaissance Capital, has been shedding almost 10 points since the start of the week, falling from 101.06 Friday last week.

The CBK's plan to buy $100 million every month till June ostensibly to solidify its FX buffer against global volatility worsened by the advent of novel coronavirus could likely see the shilling shed further, pushing up import cost and inflation.

On Tuesday, the US government was forced to slash its Federal Reserve Rate by a half basis point to help boost the greenback which was also losing ground against other major currencies.

The Kenyan Shilling reached an all-time high of 106.80 in October 2011 and a record low of 60.35 in November 2007.


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