According to the Kenyan Wallstreet, the Kenyan Shilling was today quoted by various commercial banks in the country at 108.25 Kenyan Shillings to the US Dollar (buying) and 108.35 Kenyan Shillings to the US Dollar (selling). This development is being attributed to the huge amount of pressure it has faced against the dollar and has led to the Central Bank of Kenya (CBK) intervening.
Observers and analysts alike fear that the Kenyan Shilling would go even lower against the US Dollar soon.
A Market Report by Tea Brokers East Africa (TBEA) Limited for the week which ended on the 12th of August 2020 stated that, “Expectations are that the Kenya Shilling against the US dollar will trade at the level of 108 and 108.50 in the coming week.”
The Central Bank of Kenya (CBK)’s move to try to ease up the Kenyan Shillings’ inconstancy in the forex market, has been praised by traders as the reason for its stability today.
According to the Head of Retail at Zamara; Reginald Kadzutu, “There is pressure on the currency due to a fall in revenue (tourism, exports) and a drastic drop in the growth of remittances. The poor results by listed firms at the NSE will also put pressure on the Shilling as foreigners continue to exit the bourse.”
The Kenyan Shilling has reportedly been trading at between 107.70 to the US Dollar and 108 to the US Dollar, the lowest level it has reached in weeks.
Bloomberg data revealed that the Kenyan Shillings depreciated 6.86 percent against the US Dollar over a 52-week period from 100.2900 to the US Dollar to this week’s new low of 108.4400 to the US Dollar.
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