Kenya’s shilling swung between gains and losses as businesses sought more dollars to settle month-end bills while the central bank removed money supply from the market through repurchase agreements.
The currency of East Africa’s largest economy traded less than 0.1 percent stronger at 84.34 per dollar as of 5:52 p.m. in Nairobi, after gaining as much as 1.3 percent and weakening as much as 0.7 percent.
“The Kenyan shilling held steady against the U.S. dollar as the central bank mopped liquidity and the scheduled debt auctions provided further support,” Nairobi-based NIC Bank Ltd. (NICB) said in a note to clients today.
The Central Bank of Kenya accepted 900 million shillings ($10.7 million) in seven-day repurchase agreements at a yield of 12.369 percent, according to a bank official, who asked not to be identified in line with policy. The bank accepted 100 million shillings of 14- and 28-day term-auction deposits at a weighted average rate of 12.05 percent, he said.
The Tanzanian shilling weakened as much as 0.3 percent to 1,584 a dollar, while the Uganda shilling traded unchanged at 2,480 per dollar.
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