NAIROBI (Xinhua) -- The Kenya
shilling has appreciated against the U.S. dollar in the past one week boosted by
inflows from institutional investors and horticultural produce exporters.
the Central Bank of Kenya (CBK) quoted the shilling at 102.6 against the dollar,
a high from 103.9 in January.
strengthening of the shilling has primarily been driven by dollar inflows from
offshore institutional investors and horticultural produce exporters this past
week,” Cytonn, a Nairobi-based investment firm said Monday in a weekly update.
Cytonn, the Kenya shilling during the period gained 0.8 percent to close at
102.7 on Friday, from 103.6 the previous week. On a year to date basis, the
shilling has depreciated against the dollar by 0.2 percent.
the shilling appreciated against the dollar by 1 percent to close at 102.9 from
103.9 at the end of January.
appreciating currency has helped to stabilize Kenya’s foreign exchange reserves
as the Central Bank does not need to sell dollars to buttress the shilling from
African nation’s foreign exchange reserves closed Friday at 7 billion U.S.
dollars or an equivalent of 4.6 months of import cover, from 6.9 billion dollars
the previous week.
is a drop from a peak of 7.8 billion dollars in October 2016 or equivalent to
5.2 months of import cover, the forex reserve level has now stabilized at 4.6
months of import cover, an indication of the confidence the Central Bank has
with the current levels of the shilling,” said Cytonn.