CBK intervenes and starts buying Dollars as the Kenyan Shilling continues to strengthen

 

Friday, February 16, 2024 - The Central Bank of Kenya has been forced to step in and start buying dollars to curb exchange rate volatility brought about by the strengthening of the Kenya Shilling against the dollar.

The CBK’s intervention aims at smoothing out volatility when the shilling is moving too fast in either direction.

By yesterday, it was up almost 8 percent, bidding as strong as 139 to the US dollar, a rally that was fueled by foreign inflows into the domestic debt and the resolution of a $2 billion (Sh321 billion) Eurobond that matures in June 2024.

The CBK intervention sends a strong signal that they want the currency to stabilise and that any changes should be gradual. 

The regulator only intervenes when it deems necessary and does not have a preferred level for the currency.

The Kenyan DAILY POST

 

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