Bloomberg News

Kenya Shilling Gains for Seventh Day as Bank Stays Out of Market

June 21, 2012

Kenya’s shilling gained for the seventh day, the longest winning streak in almost five months, as the central bank stayed out of the market.

The currency of East Africa’s largest economy appreciated as much as 0.3 percent and closed less than 0.1 percent higher at 83.55 per dollar in the capital Nairobi, the longest winning streak since Feb 1.

The Central Bank of Kenya did not offer repurchase agreements and term-auction deposits for a second day today, a bank official who asked not to be named in line with policy said. The bank reintroduced term-auction deposits as a “liquidity management” measure on June 5. Kenya sold 1.45 billion shillings ($17.3 million) of 3-months treasury bills at today’s auction, having offered 2 billion shilling, the central bank said in an e-mailed statement.

Currency gains were “helped by tightening liquidity and importers holding back on dollar purchases in anticipation of further gains,” Nairobi-based NIC Bank Ltd. (NICB), said in a note to clients.

Uganda’s shilling gained 0.7 percent to close at 2,467 per dollar, while Tanzania’s currency appreciated by less than 0.1 percent to close at 1,581 per 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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