Sunday, April 7, 2024 - Equity Bank CEO James Mwangi has spoken about the ongoing strengthening of the Kenyan shilling against the US Dollar.
Dr. Mwangi broke his silence during an interview with one of
the local dailies on Friday.
According to Dr. Mwangi, the strengthening of the Kenyan shilling is an act of the currency finding its true value.
“The shilling has found its value in the marketplace. I
believe the price we are seeing is the market value,” said Dr. Mwangi.
His sentiments came days after the shilling cooled off
from its sharp upward movement in what is widely seen as a more predictable and
stable movement.
Nonetheless, Dr. Mwangi cautioned that the future movement
of the local currency will remain dependent on the forces of supply and demand.
“The shilling is dependent on the supply and demand of
dollars, and the demand for imported goods by Kenyans. Those two factors will
determine the direction the shilling takes,” he said.
“It is a question of whether we will suddenly develop an
appetite for imported goods, which are now more affordable, and then exert
pressure through demand of dollars.”
According to data from the Central Bank of Kenya (CBK), the
Kenya shilling is officially selling at 129.82 against the US dollar.
Forex bureaus are buying the US dollar at around 125 and
selling at 130. This is a massive gain from the low of 165 per US Dollar the
shilling traded as at the end of January 2024.
The shilling has also gained against multiple other currencies, including the Sterling Pound.
For instance, at the beginning of the year, the local currency was between 205 and 210 against the Sterling Pound.
Currently, it is at 161 to the Pound as per the forex data from the CBK.
The Kenyan DAILY POST
-overlay.jpg)
0 Comments