Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Kenyan shilling treads water, eyes on Central Bank

11 December 2013, 17:45

Nairobi -  Kenya shilling moved sideways on Wednesday, and traders said all eyes were on the central bank for signs it would continue taking liquidity out of the market.

Commercial banks quoted the local currency at 86.65/85 at 0740 GMT compared with 86.70/86.80 at Tuesday's close.

"I think they will be back in the market because if rates on the overnight market come down there will be pressure on the local currency because there is no point holding shillings," said Ignatius Chicha, head of trading at Citibank in Nairobi.

The Central Bank of Kenya has absorbed liquidity from the money market in the last three consecutive sessions after the overnight rate dipped below 7 percent on Friday.

By taking out excess liquidity, the central bank makes it relatively more expensive to hold onto long dollar positions, which in turn helps the shilling strengthen.

The market looked set to be a net seller of dollars in the second half of the month, market players said, as corporate demand for the U.S. currency tapers off over the Christmas holiday.

"We expect dollar inflows to outstrip demand as we head towards the close of the month," said Bank of Africa Kenya in a daily briefing.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Cyril Mike Odhiz
Kenyans furious on young lady aft...

A young Kenyan woman is the talk of town after she posted a photo with her elderly lover after a round of steamy sex, or so the photo suggested.  Read more...

Submitted by
Kiplangat langat
Uhuru could be a one term Presid...

Bomet governor Isaac Ruto has said that President Uhuru Kenyatta could be a one term President if he fails to increase allocations to the counties. Read more...

Submitted by
Mody Sammy
35 year old farmer a new milliona...

A 35 year old farmer from Mpeketoni Lamu county has become the latest millionaire in town as she became winner in the ongoing ‘Shinda Mamili na Story Ibambe’. Read more...

Submitted by
Shakila Alivitsa
Leave your past relationship bagg...

Leave your past relationship baggage at the door when you start a new relationship. Read more...

Submitted by
Shakila Alivitsa
Advice from a young married Kenya...

I was just going to get water in the office kitchen and thought a simple hi was fine until I ended up in an hour long conversation with someone. Read more...

Submitted by
Shakila Alivitsa
Helping you find the type of man ...

To put it simply, you can’t go looking for fish in a meat market; you have to go to a fish market. Read more...