The Central Bank of Kenya (CBK) has reassured that the shilling remains steady, offering a much-needed sign of stability for the economy at a time of global financial uncertainty.
In its bulletin for the week ending August 21, the CBK reported that the local unit traded at 129.24 shillings against the US dollar, unchanged from the previous week.
The shilling also stayed firm against the Euro, Sterling Pound, the Japanese Yen, and regional currencies, including those of Uganda, Tanzania, Rwanda, and Burundi.
Behind this resilience are strong foreign exchange reserves, which stood at 11.037 billion US dollars, enough to cover 4.8 months of imports.
This level of cover is above the required threshold and provides the country with a crucial shield against external shocks.
The CBK highlighted that the currency’s steadiness is particularly significant given current global pressures. A strengthening US dollar and rising inflation in key economies such as the United Kingdom have placed many emerging market currencies under strain.
Closer to home, the money market showed a balance. Excess reserves held by commercial banks averaged 30.4 billion shillings, while the interbank rate eased slightly to 9.47 per cent from 9.48 per cent a week earlier. Fewer deals were recorded, both in number and value, reflecting caution among banks.
Still, the CBK has warned that risks persist. Shifts in global commodity prices and monetary tightening by major economies could weigh on the exchange rate in the future.
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