Tuesday, 31 March 2015 17:48
NAIROBI: Kenya’s shilling was a touch weaker on Tuesday as banks bought dollars to help clients settle their bills for monthly imports from abroad, putting pressure on the local currency.
By 0710 GMT, commercial banks quoted the shilling at 92.35/45 to the dollar, from Monday’s close of 92.30/40.
Traders said most firms keen to settle their bills before Thursday, as banks and most businesses will be closed on Friday and Monday for public holidays.
“Most banks are picking up some dollars to cover their clients’ end month demand,” said Eric Gathecha, a trader at I&M Bank.
The shilling, down 2.2 percent against the dollar this year, has been receiving support from regular central bank liquidity mop ups, which make it more expensive for banks to hold dollar positions. The bank soaked up 17 billion shillings ($ 184 million) in excess liquidity on Monday.
Copyright Reuters, 2015
