–Kenyan shilling is gaining ground against the dollar as government works all round the clock to stabilize the economy
The Central Bank of Kenya CBK, today announced a positive gain in the shilling in the past eight days.
In its weekly economic review report released on Friday, the regulator noted that the dollar had shed Ksh0.68 in that period.
As detailed in the report, the dollar, on February 1, was trading at Ksh160.67 and dropped to Ksh160.57 on February 2 – 4.
On February 5, the exchange rate dropped to Ksh160.51 and Ksh160.36 on February 6.
On the other hand, between February 7 and February 8, the dollar traded at Ksh160.32 and Ksh160.09 respectively.
“The Kenya Shilling remained relatively stable against major international and regional currencies during the week ending February 8. It exchanged at Ksh160.09 per US dollar on February 8, compared to Ksh160.67 per US dollar on February 1.
“The US dollar index strengthened by 1.1 per cent against a basket of major currencies during the week ending February 8,” read the report in part.
Earlier in the week, CBK Governor Kamau Thugge expressed that the shilling would begin gaining ground soon owing to three factors including the expected boost of the foreign reserves through foreign investments, loan disbursements and the repayment of the Eurobond.
He noted that the factors would help reduce pressure on the demand for the dollar.
“The IMF, as I indicated earlier, did disburse USD 684 million just last month. The Trade Development Bank (TDB) also made some disbursements of almost USD 400 million within the last two months. We are also expecting disbursements from the World Bank around March/ April of close to USD 1.5 billion,” he stated.
With the gains made by the shilling against the dollar, importers are set to be the biggest beneficiaries given that they purchase goods in the international market in dollars.
Among the notable beneficiaries will be fuel importers. Notably, global fuel prices have declined in the last two weeks owing to reports of an anticipated ceasefire in the ongoing conflict in Gaza.
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