NAIROBI (Xinhua) --
Kenyan banks borrowed more from each other this week as they
sought funds to remit taxes amid a rise in spending by the
government, the Central Bank of Kenya (CBK) said on Saturday.
The average volumes
traded between the banks increased to 179 million U.S. dollars
in the week, from 90 million dollars the previous week.
“Activities in the
interbank market increased partly reflecting the seasonal pickup
in demand for funds to facilitate value added tax remittances,”
noted the apex bank.
weighted average interbank rate declined to 6.07 percent from
The central bank
attributed the decline to lower interest rates trading by some
banks, especially the bigger ones.