Kenyan shilling steady, activity to pick up next week

 

The shilling fell 11 per cent to the dollar during 2015. PHOTO | FILE 

By REUTERS

In Summary

• Activity is not expected to pick up until next week when businesses fully reopen after the festive break.
• The shilling - which fell 11 per cent to the dollar during 2015 - was expected to trade in the 102.00 to 102.50 range in coming days.

The Kenyan shilling was steady on Monday and traders said they expected the currency to trade in a narrow range in coming days, with activity not expected to pick up until next week when businesses fully reopen after the festive break.

At 0720 GMT, commercial banks quoted the shilling at 102.15/35 to the dollar, compared with a close of 102.20/30 on Thursday, the previous day the currency traded.

"It's very quiet. Most people are still on leave. Activity should pick up aggressively next week," a senior trader at one commercial bank said.

A second trader said the shilling - which fell 11 per cent to the dollar during 2015 - was expected to trade in the 102.00 to 102.50 range in coming days.

CBK action

The Central Bank of Kenya (CBK) said on Monday it planned to inject Sh6.5 billion ($63.66 million) into the money markets.

The bank uses reverse repurchase agreements to offer liquidity whenever its analysis shows some banks might be struggling to get funding from their counterparts.

READ: How CBK boss has ushered in a regime change since taking the reins