Tight liquidity boosts Kenyan shilling
30 June 2016, 21:11
Nairobi (Reuters) The Kenyan shilling strengthened against the dollar on
Thursday mainly due to a tightening of liquidity in the money markets.
At 0640 GMT, commercial banks posted the shilling at
101.00/20 against the dollar up from Wednesday's close of 101.15/25.
Traders said the government had withdrawn some of its
deposits with commercial banks as it reconciles its books at the end of the
financial year, leading to the liquidity squeeze.
The weighted average interest rate on the overnight borrowing
market for banks rose to 8.8586 percent on Wednesday from 8.6352 percent the