Bloomberg News

Kenyan Shilling Snaps Three-Day Loss as Bank Curbs Money Supply

July 25, 2012

Kenya’s shilling snapped a three-day losing streak as the central bank removed money from the market through repurchase agreements.

The currency of East Africa’s largest economy appreciated as much as 1.2 percent to 83.30 a dollar, the biggest gain since June 7, and was trading 0.3 percent stronger at 84.10 by 4:50 p.m. in Nairobi the capital.

“The Kenyan shilling is being supported by the central bank liquidity mop ups,” Nairobi-based NIC Bank Ltd. (NICB) said in a note to clients today. “We expect the shilling to trade within the range of 84.00 and 84.50.”

The Central Bank of Kenya accepted 1 billion shillings ($11.9 million) in seven-day repurchase agreements at a yield of 12.75 percent, according to a bank official, who asked not to be identified in line with policy.

Uganda’s shilling weakened less than 0.1 percent to 2,478.75 per dollar, while the Tanzanian shilling gained for a second day, rising 0.2 percent to 1,579 a 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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