NAIROBI, (Xinhua) --
Liquidity in Kenya’s money market was tight this
week as government spending remained low for a second week in a
The tight liquidity
pushed up the interbank rate to a high of 9 percent from 8.4
percent at the end of last week, Central Bank of Kenya said in a
liquidity conditions remained relatively tight during the week
reflecting the seasonal low government spending at the beginning
of the fiscal year. The weighted average interbank rate
increased to 9 percent on Friday,” said the apex bank.
The cash transacted
between commercial banks declined during the week as the
institutions shunned expensive borrowing.
“The average volumes
traded declined to 114 million U.S. dollars from 123 million
dollars in the previous week, while the average number of deals
decreased to 29 from 36,” said the bank.