Bloomberg News

Kenya Shilling Snaps Two-Day Decline; Tanzania Shilling Weakens

December 23, 2011

Dec. 23 (Bloomberg) -- Kenya’s shilling was unchanged, snapping two days of declines. The Tanzanian shilling weakened as businesses stockpile dollars on expectations the U.S. currency may become more expensive after the holiday break.

The Kenyan shilling, currency of East Africa’s biggest economy, has been the best performer among more than 170 currencies on Bloomberg in the second half of this year, gaining 6.8 percent against the dollar. Kenya’s currency has weakened 3.5 percent for the year, and was steady at 83.65 per dollar at 1:56 p.m. in Nairobi.

Tanzania’s shilling depreciated by 0.2 percent to 1,590 per dollar at 1:54 p.m. in Dar es Salaam, the commercial capital.

“Commercial banks are demanding dollars to secure their position ahead of the Christmas holiday which caused the shilling to depreciate,” Fred Siwale, a trader with CRDB Bank Plc, said today by phone from Dar es Salaam.

Uganda’s currency slumped for the third day, the longest losing streak in four weeks, retreating 1.2 percent to 2,449.50 by 1:55 p.m. in Kampala, the capital.

--Editors: Linda Shen, Gavin Serkin

To contact the reporters on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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