Kenya’s central bank seeks to mop up US$59m via repo

Kenya’s central bank sought to mop up 5 billion shillings ($58.9 million) in excess liquidity using repurchase agreements (repos), it said on Monday.
The Central Bank of Kenya head offices in Nairobi. Net photo.
The Central Bank of Kenya head offices in Nairobi. Net photo.

Kenya’s central bank sought to mop up 5 billion shillings ($58.9 million) in excess liquidity using repurchase agreements (repos), it said on Monday.

The bank has been soaking up liquidity most of this year using repos to support the shilling, which has come under pressure in the last two months after policymakers cut the key interest rate by a total 500 basis points to 13 percent.

Lower interest rates normally makes credit access cheaper for importers and easier for commercial banks to hold long dollar positions which weigh on the local currency.

 

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