Treasury unveils bailout plan
14 October 2011, 08:41
Nairobi - Treasury on Thursday moved to calm the financial markets and shore up the shilling, which has depreciated rapidly this year.
Finance Minister Uhuru Kenyatta on Thursday unveiled Treasury’s plans to calm the financial markets and shore up the shilling. in a bid to increase in the flow of dollars into the market, the government is in talks with the International Monetary Fund for additional funding so as to restore confidence in the shilling.
Speaking to the Daily Nation after a meeting with the Central Bank of Kenya and the Kenya Banker’s Association, Kenyatta also said Treasury had cut by half the amount of foreign currencies a bank can hold without the funds being a deposit by a customer, thus reducing banks’ ability to hoard dollars.
Kenyatta went on to add that the Treasury is confident that the current pressures on prices and the exchange rate will subside in line with the measures they are taking.
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