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http://www.businessweek.com/news/2012-11-27/kenyan-shilling-drops-to-six-month-low-on-year-end-dollar-demand

Bloomberg News

Kenyan Shilling Drops to Six-Month Low on Year-End Dollar Demand

November 27, 2012

Kenya’s shilling weakened against the dollar, heading for the lowest level in almost six months, as companies were said to seek the U.S. currency to settle year- end obligations.

The currency of East Africa’s largest economy fell as much as 0.2 percent to 86.07 a dollar and was trading less than 0.1 percent lower at 85.95 by 4:14 p.m. in the capital, Nairobi. A close at that level would be the weakest since June 4, according to data compiled by Bloomberg.

“We’ve seen a lot of demand in the market for dollars as we come to the end of the year; multinationals are repatriating for dividends and profits, importers are settling their bills,” Benard Matimu, chief dealer at Nairobi-based NIC Bank Ltd., said by phone.

The Central Bank of Kenya withdrew 7.93 billion shillings (92.3 million) from the financial markets through the sale of seven-day repurchase agreements and 14-day term auction deposits.

Uganda’s shilling fell for a seventh day, declining 1.3 percent to 2,695 a dollar, heading for its lowest close since October 2011. The Tanzanian shilling retreated 0.1 percent to 1,610 a dollar.

To contact the reporter on this story: Sarah McGregor in Nairobi at smcgregor5@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net


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