NAIROBI (Xinhua) --
Kenya’s interbank rate rose 1.4 percent this week
as commercial banks aggressively borrowed from each other.
The rate jumped from
4.2 percent last week to 5.6 percent this week, Central Bank of
Kenya (CBK) said in its weekly brief received Saturday.
“The average number
of interbank deals increased to 41 from 33 deals in the previous
week, while the average interbank volumes traded increased to
28.5 billion shillings (279 million U.S. dollars) from 216
million dollars,” said the apex bank.
However, even as
banks’ intensified borrowing, during the week liquidity
conditions in the money market remained high supported by net
redemptions of government securities, CBK said.
excess reserves recorded a shortfall of 125 million dollars in
relation to the 5.25 percent cash reserves requirements,” added