Kenya Shilling Regains Strength: Development Loans, Other CBK Measures Propping Up Local Currency
==========
The Kenyan shilling has reported a significant gain, exchanging at KSh 156.5 per US dollar on February 13. The Central Bank of Kenya (CBK) raised the interest rate to 13% in its monetary policy to strengthen the shilling. Market analysts attribute the shilling's strength to the continued inflow of foreign currency. CBK is using money from development partners to prop up the shilling, and it expects over KSh 733 billion of foreign inflows. In January 2024, Kenya received $684.7 million from the International Monetary Fund (IMF) and $385 million from the Trade and Development Bank. The country is also expecting $88 million from the African Development Bank and $1.5 billion from the World Bank. President William Ruto's administration is securing an additional $2 billion and $500 million Samurai bond, which could further strengthen the shilling. CBK measures, such as increasing base loan interests to 13%, have also contributed to the shilling's appreciation. CBK governor Kamau Thugge met with bank officials to persuade them against setting aggressive dollar bids. The shilling's value against the US dollar slowed down in December 2023 and crossed the 160 mark in January 2024. Inflation surged to 6.9% in January, and the shilling lost 27.36% against the dollar compared to the same period in 2023.
#KenyanShilling #CentralBankOfKenya #DevelopmentLoans #ForeignCurrency
https://www.tuko.co.ke/business-economy/537822-kenya-shilling-regains-strength-development-loans-cbk-measures-propping-local-currency/
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2024-02-13 12:35:50
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2024-02-13 12:35:50Event JSON
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"content": "Kenya Shilling Regains Strength: Development Loans, Other CBK Measures Propping Up Local Currency\n==========\n\nThe Kenyan shilling has reported a significant gain, exchanging at KSh 156.5 per US dollar on February 13. The Central Bank of Kenya (CBK) raised the interest rate to 13% in its monetary policy to strengthen the shilling. Market analysts attribute the shilling's strength to the continued inflow of foreign currency. CBK is using money from development partners to prop up the shilling, and it expects over KSh 733 billion of foreign inflows. In January 2024, Kenya received $684.7 million from the International Monetary Fund (IMF) and $385 million from the Trade and Development Bank. The country is also expecting $88 million from the African Development Bank and $1.5 billion from the World Bank. President William Ruto's administration is securing an additional $2 billion and $500 million Samurai bond, which could further strengthen the shilling. CBK measures, such as increasing base loan interests to 13%, have also contributed to the shilling's appreciation. CBK governor Kamau Thugge met with bank officials to persuade them against setting aggressive dollar bids. The shilling's value against the US dollar slowed down in December 2023 and crossed the 160 mark in January 2024. Inflation surged to 6.9% in January, and the shilling lost 27.36% against the dollar compared to the same period in 2023.\n\n#KenyanShilling #CentralBankOfKenya #DevelopmentLoans #ForeignCurrency\n\nhttps://www.tuko.co.ke/business-economy/537822-kenya-shilling-regains-strength-development-loans-cbk-measures-propping-local-currency/",
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