June 19 (Bloomberg) -- Kenya’s shilling is expected to stabilize once events in the eurozone settle and the East African country completes its cycle of imports of capital goods, Central Bank of Kenya Governor Njuguna Ndung’u said.
The central bank monitored events on the domestic currency market last week and found the shilling’s weakening to be “not justified by what we are seeing,” Ndung’u said in remarks published in the Nairobi-based Standard on Sunday newspaper today. Transactions on the market were in the usual range of $300 million to $350 million a day, he said.
“The bank wishes to assure the market that the panic is not warranted,” Ndung’u said.
Kenya’s shilling traded at a 17-year-low of 90.95 against the dollar on June 16. The currency has weakened 10 percent so far this year.
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