Bloomberg News

Kenya Shilling Snaps 3-Day Drop as Central Bank Curbs Liquidity

May 11, 2012

Kenya’s shilling snapped three days of losses as the central bank accepted more bids for repurchase agreements than it had offered.

The currency of East Africa’s biggest economy appreciated 0.3 percent to 83.25 per dollar as of 1:44 p.m. in Nairobi.

Kenya’s central bank accepted all 9.3 billion shillings of bids received for seven-day repurchase agreements after originally offering 5 billion shillings, said Godfrey Putunoi, a dealer at the bank’s money-market department. The central bank had stayed out of the money market the last three days.

The weighted average rate for the repos was 16.073 percent, Putunoi said by phone today from Nairobi, the capital. The bank has mopped up a total of 26 billion shillings through repurchase agreement from April 27 through May 7, according to data compiled by Bloomberg.

The Tanzania’s shilling strengthened the first time in three days, appreciating 0.5 percent to 1,574 per dollar, while the Ugandan shilling was unchanged at 2,465 to the dollar.

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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