By REUTERS
Central bank sold dollars for the third time in April after the shilling weakened to a three year low on Monday, traders said.
Central bank sold dollars for the third time in April after the shilling weakened to a three year low on Monday, traders said.
The bank intervened to help stabilise the shilling after it
eased to Sh94.40/50 to the dollar, its lowest level since November 2011,
they said. After the central bank's move the shilling traded at
Sh94.20/30 to the dollar, its closing level on Friday.
"They are not trying to defend any level, they are
just trying to smooth it out," said a trader at one commercial bank. Two
other traders confirmed the bank had been in the market selling
dollars.
The bank last sold dollars on April 21 and before that on April 7.
The shilling, down 4.15 per cent against the dollar
this year, has been hit by a fall in foreign exchange revenues from
tourism after a number of militant attacks scared visitors away. Uneven
rainfall has also hit the horticulture sector, another top foreign
exchange earner.
Earlier in the session, traders said the shilling
was likely to remain under pressure in coming weeks, even if the central
bank intervened to cushion local currency weakness.
"This is a continuation of a trend where we see the
shilling touch new lows almost on a daily basis," Joshua Anene, a
trader at Commercial Bank of Africa, said before the bank sold dollars.
"The issue is fundamental weaknesses in our economy."
No comments :
Post a Comment