Kenya central bank intervenes in forex market to support shilling

nairobi/Kampala – The Kenyan central bank pumped dollars into the market yesterday after the shilling weakened and threatened to break past the psychologically important level of 104.00, traders said. They said the regulator sold the dollars to banks at the start of the session, after the currency opened at 104.05/15, down from Wednesday’s close of 103.85/95. The shilling was trading at 103.95/104.05 per dollar in early morning trading.

Meanwhile, the Ugandan shilling was stable on yesterday mainly due to tighter liquidity in the domestic market money market, which usually makes it more expensive for traders to buy dollars. Commercial banks quoted the shilling at 3,600/3,610, unchanged from Wednesday’s close.