NAIROBI (Xinhua) --
The Kenya shilling climbed up by 0.05 percent Tuesday
boosted by increased U.S. dollar inflows amid low demand from oil
The shilling has been under pressure since the start of the month
dropping to 103.5 against the dollar following increased dollar
demand from oil importers.
The Central Bank of Kenya on Tuesday however quoted the shilling at
103.3 against the dollars, with traders in commercial banks noting
the local unit had received support from diaspora remittances and
inflows from non-governmental organizations.
On Monday, the currency too rose by a similar margin (0.05 percent)
with traders noting there was rise in dollar inflows.
As the shilling faces pressure, the Central Bank has enough reserves
to cushion the local unit, but it has not intervened in the money
market so far.
Kenya’s gross foreign exchange reserves now stand at a new high of
over 8 billion dollars boosted by inflows from external lenders.
“These reserves provide an adequate buffer against short-term
shocks,” noted the CBK’s Governor Patrick Njoroge last week.
Analysts expect that in the coming weeks, the shilling would
continue to come under intense pressure due to global strengthening
of the dollar and recovery of global oil prices.