NAIROBI (Xinhua) --
The Kenya shilling declined Thursday to trade
below 103 mark against the U.S. dollar following increased
demand of dollars from end month oil importers.
The Central Bank of
Kenya (CBK) on Thursday quoted the shilling at 103.03 against
the dollar down from 102.95 the previous day.
The fall to above
103 level was the first in weeks after the shilling held steady
against the dollar to hit 102.7 due to increased inflows from
horticulture amid low dollar demand.
The local currency
fell 0.24 percent on Wednesday to close the day at 102.95 while
Tuesday it closed at 102.91.
noted that the pressure the shilling was facing currently would
end as there was a rise in foreign exchange inflows from
remittances and charities, cushioning against demand for dollars
from oil importers.
The Central Bank,
however, would not allow the shilling to fall further as it has
huge dollar reserves that provide a buffer and aid to stabilize
the currency. The Central Bank normally sells dollars to support
the shilling in case it faces pressure.
The apex bank’s
foreign exchange reserves rose last week to a record high of 7.8
billion dollars or 5.1 months of import cover following
disbursement of 800 million dollars syndicated loan.