Bloomberg News

Kenya Shilling Strengthens for Second Day on Low Dollar Demand

February 14, 2012

Feb. 13 (Bloomberg) -- Kenya’s shilling strengthened for a second day on “low” dollar demand by businesses.

The currency of East Africa’s biggest economy appreciated as much as 0.7 percent to 82.40 per dollar and was trading less than 0.1 percent higher at 82.98 as of 3:35 p.m. in Nairobi.

“The shilling is stronger due to low dollar demand in the market by businesses and following the recent mop-up by the central bank,” Bernard Matimu, chief dealer at Nairobi-based NIC Bank Ltd., said in a phone interview today.

The central bank removed 10 billion shillings ($120 million) from the market last week through repurchase agreements, it said in a weekly statement on Feb 10.

Tanzania’s shilling also appreciated for a second day, as the central bank sold dollars to meet demand. The currency of the second-biggest economy in East Africa gained as much as 0.2 percent and traded 0.1 percent stronger at 1,590 per dollar at 4:15 p.m.

“The central bank has been supplying dollars to the market to meet demand from oil importers and breweries,” said Eric Chijoriga, a trader with National Bank of Commerce Ltd., ABSA Group’s Tanzanian unit said today by phone from Dar es Salaam, the commercial Capital.

The Ugandan shilling was unchanged, trading at 2,310 per dollar, the same closing level on Feb 10.

-- With assistance from David Malingha Doya in Dar es Salaam Editors: Peter Branton, Stephen Kirkland

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

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


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