NAIROBI (Xinhua) --
Kenya’s interbank rate declined by four percent
on a weekly basis to stand at seven percent this week, data from
the Central Bank of Kenya showed Saturday.
The rate stood at a
three-year-high of 11 percent in the previous week.
The apex bank
attributes the four percent decline to high liquidity in the
money market as commercial banks piled up their cash reserves.
“Liquidity in the
money market improved during the week partly due to the
commencement of a new cash reserve requirement (CRR) cycle on
Dec. 15. Commercial banks’ excess reserves stood at 33.2 billion
shillings (325 million U.S. dollars) in relation to the 5.25
percent CRR,” said the bank.
interbank volumes traded this week decreased to 135 million
dollars compared to 150 million dollars last week.