Shilling stable against dollar as CBK offers assurance
The shilling yesterday stabilised against the dollar after mild pressure on Wednesday from importers and corporates, with the Central Bank of Kenya reassuring it could iron out volatility in the near-term.
The Kenyan unit exchanged at 102.77/102.97 in early trading, with the average unchanged from 102.77/102.98 on Wednesday.
The currency has largely been helped by rising dollar inflows from exports and remittances amid relatively muted demand by importers. CBK data shows diaspora remittances rose by four per cent in the first six
months of the year to hit $887.6 million (Sh91.3 billion).
CBK governor Patrick Njoroge said the regulator will continue to keep a close eye on the market to iron out volatility on the shilling, including gains.
“Volatility is not our friend. More generally, there was indeed some appreciation and on some days we did smooth the appreciation post-election and now you have seen where rate is,” the governor said on Wednesday