Bloomberg News

Kenyan Shilling Snaps Two-Day Gain, Trades Unchanged on Repos

April 17, 2012

Kenya’s shilling was unchanged against the dollar, snapping two days of gains, after the central bank received bids for fewer repurchase agreements than it had offered.

The currency of East Africa’s biggest economy traded as much as 0.3 percent lower at 83.30 per dollar and traded at yesterday’s closing price of 83.05 by 2:48 p.m. in Nairobi.

Kenya’s central bank received bids for 550 million shillings ($6.62 million) of seven-day repurchase agreements, which it sold at 17.545 percent, an official at the Nairobi- based bank said in a phone interview today. The bank had offered 2 billion shillings of the securities, the official said.

Uganda’s currency declined as much as 0.7 percent and was 0.4 percent weaker at 2,509.50 per dollar.

“The shilling also came under pressure because of dollar purchases in the interbank market,” Taib Lubega, a currency trader at Stanbic Bank Uganda Ltd. said by phone from Kampala.

Tanzania’s shilling depreciated as much as 0.2 percent, and was trading 0.1 percent weaker at 1,588 per dollar, according to data compiled by Bloomberg.

“Demand from the construction sector has caused the shilling to depreciate,” Hakim Sheik, a dealer with Commercial Bank of Africa Tanzania Ltd., said today by phone from Dar es Salaam, the commercial capital.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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