Shilling sta­ble against dol­lar as CBK of­fers as­sur­ance

Business Daily (Kenya) - - MONEY & MARKETS - Con­stant Munda cmunda@ke.na­tion­media.com

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

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