Bloomberg News

Kenyan Shilling Climbs to Two-Month High as Bank Curbs Supply

July 30, 2012

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.

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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