× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

CBK Governor Patrick Njoroge links some shillings problems to malicious actors

By Reuters | March 24th 2020
CBK Governor Patrick Njoroge (PHOTO; YouTube)

Some of the Kenyan shilling’s recent weakening was caused by market misunderstanding of the central bank’s plan to boost its reserved by buying dollars from the market, and some “malicious actors”, the central bank governor said on Tuesday.

The shilling is hovering close to its record low of 106.70 per dollar, mainly due to the strengthening of the dollar and concerns about the impact of the coronavirus on Kenya’s export earnings.

The bank in March said it will buy 100 million US dollar a month between March and June to increase reserves and will also purchase a minimum $1 million from banks at prevailing rates in each deal.

The bank has bought dollars in the past through open market operations, but it does not usually disclose the target amount or any other details.

New developments across the globe, including a significant drop in oil prices, have opened a window for a more formal dollar purchase programme, the Central Bank of Kenya (CBK) said in a statement seen by Reuters.

“This would bolster CBK’s preparedness to deal with heightened global volatility and uncertainties,” it added.

Traders reacted angrily to the move, saying the central bank’s intervention could distort the foreign exchange market, due to the anticipated spike in demand for dollars.

“They should have bought dollars discreetly,” said a market participant who did not wish to be named.

Share this story
Kenya Airways gives free ticket from New York
Kenya Airways gives complimentary tickets
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.