Shilling steady as CBK mop ups offset market liquidity

Kenya: The shilling was flat yesterday after liquidity mop ups by the Central Bank offset increased local currency liquidity but traders said the unit could still weaken on pent-up dollar demand. At the opening of business the shilling was trading at 91.55/65 to the dollar, the same as the previous day's close.

 "That has slowed down the pace of the shilling weakening," said a trader at a major commercial bank in Kenya, referring to the aggressive mopping up by the Central Bank. Central Bank has mopped up a total of Sh31 billion in excess liquidity from the money markets so far this week.