Kenya: Central Bank of Kenya (CBK) said yesterday it was “closely monitoring” developments in the foreign exchange market and that it would continue to use monetary policy tools to deal with any volatility.
“The bank has adequate foreign exchange reserves in excess of 4.5 months of imports to cushion the exchange rate against these short-term shocks and volatility,” the bank said in a statement on its website, after the shilling touched fresh three-year lows.
The shilling weakened to a new low on Monday, weighed down by corporate demand for foreign exchange and global dollar strength, a slide that traders said could prompt Central Bank intervention.
The shilling was quoted at 93.20/30, down from Friday’s 92.95/93.05 finish. The shilling was last at that level in November 2011.
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