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.


Shilling stable, awaiting CBK action

13 August 2013, 14:50

Nairobi - The Kenyan shilling was steady early on Tuesday, with traders keeping an eye out for movement after Central Bank of Kenya injected liquidity in the previous session for the first time in nearly two years, weakening the local currency.

The bank on Monday injected 12.9 billion shillings into the money market using reverse repurchase agreements (repos), at a weighted average rate of 8.921 percent. It had sought to inject 18 billion shillings.

The shilling stood at 87.60/70 per dollar by 0717 GMT, barely changed from Monday's close of 87.55/75.

"Most people are waiting to see if there is a repeat of what the central bank did yesterday," said Peter Mutuku, head of trading at Bank of Africa.

Typically, when the central bank releases shillings into the market it makes it cheaper to hold long dollar positions weighing on the local currency.

In its latest weekly bulletin, the central bank said that shilling liquidity had been tight as the regulator was holding vast government funds which will go towards payments after the start of a new financial year in July.

The reverse repos weakened the shilling out of a tight range of 87.25-87.55 it was stuck in for nearly two weeks, underpinned by rising interest rates in the money market and short term debt yields.

- Reuters


Read News24’s Comments Policy

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

Read more from our Users

Submitted by
Jayne Zack
I am in ODM to stay, Busia Depu...

Busia Deputy Governor Kizito Wangalwa told Deputy President William on the face that he was in the Orange Democratic Movement to stay. Read more...

Boda Boda operators in Bahati rai...

Motorbike Boda Boda operators from Bahati Sub county on Tuesday took to the streets of Nakuru’s CBD lamenting over what they term is harassment by patrol police officers in the area. Read more...

Submitted by
Gabriel Ngallah
Human Rights activist lives in fe...

The Human rights fraternity in Mombasa is currently living in fear after the home of one of the vocal human rights champion was invaded on Monday night. Read more...

Submitted by
kel wesh
Poisonous milk powder siezed by K...

The Kenya Revenue Authority has seized two containers with illegal milk powder which had been declared as gypsum board at Mombasa port. Read more...

Submitted by
William Korir
Be ready for protests, Raila warn...

Expect protests if meddling with Auditor General continues, Raila Odinga has said. Read more...

Submitted by
Kenya says will return to interna...

Kenya will return to international markets to borrow when it feels the time is right, National Treasury Cabinet Secretary Henry Rotich said on Tuesday. Read more...