Jan. 24 (Bloomberg) -- Kenya’s shilling appreciated for the first time in three days as the central bank curbed money supply through repurchase agreements.
The currency of East Africa’s biggest economy gained as much as 0.7 percent to 85.60 per dollar and traded 0.3 percent higher at 85.93 at 3:53 p.m. in Nairobi.
Kenya’s central bank sold 250 million shillings ($2.9 million) of seven-day repurchase agreements at 18 percent, after offering 500 million shillings of the securities, Godfrey Putunoi, a trader in the Nairobi-based bank’s money market department, said in a phone interview today.
Tanzania’s shilling weakened for a second day on increased dollar demand from oil importers. The currency of the second- largest East African economy depreciated 1 percent to 1,607.50 per dollar and was trading 0.2 percent lower at 1,594.63 at 3:03 p.m. in the capital Dar es Salaam.
“The shilling has depreciated on a combination of demand mainly from the oil sector and interbank trading,” Hamis Mwakibete, head of trading at Commercial Bank of Africa Tanzania Ltd., said today by phone from Dar es Salaam.
Uganda’s currency strengthened for a fourth day, the longest streak in over a month, on increased dollar inflows from commodity sales and non-governmental organisations.
The currency of the third-largest East African economy appreciated as much as 0.5 percent to 2,369.60 and was trading 0.2 percent higher at 2,378 at 3:49 p.m. in the capital Kampala.
“There are heavy dollar inflows from commodity exports especially coffee coupled with end of month conversions by non- governmental organizations,” Taib Lubega, a currency trader at Stanbic Bank Uganda Ltd. said by phone from Kampala.
The nation’s central bank will offer 100 billion shillings ($42 million) of three-, six- and 12-month bills tomorrow. The 3-month yields at last sale on Jan. 11 were 22.859 percent
“There is anticipation in the market that there will be dollar inflows from offshore players who want to buy Treasury bills tomorrow,” Lubega said.
--With assistance from Fred Ojambo in Kampala and David Malingha Doya in Dar es Salaam. Editors: Peter Branton, Linda Shen
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