Kenya’s shilling gained to a two- month high as the central bank boosted by threefold the amount of currency it withdraws from the market using repurchase agreements and term-auction deposits.
The currency of East Africa’s largest economy appreciated 0.9 percent to 83.47 a dollar at 3:19 p.m., in Nairobi the capital, the strongest since May 9 on a closing basis.
Kenya Central Bank accepted about 9 billion shillings ($108 million) of repurchase agreements and term-auction deposits today, compared with 3 billion shillings accepted July 27, according to data compiled by Bloomberg.
“The shilling has been stable, propped up by the central bank’s tight monetary stance,” Nairobi-based NIC Bank Ltd. (NICB) said a note to clients today.
The Tanzanian shilling gained 0.3 percent to 1,580 per dollar, while Uganda’s shilling weakened 0.2 percent to trade at 2,482.50 versus the U.S. currency.
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