Kenya shilling stable amid rising inflows to debt, stock markets

by Bedah Mengo

NAIROBI, Nov. 29 (Xinhua) -- The Kenya shilling was largely stable against the U.S. dollar on Wednesday amid rise in inflows to the debt and stock markets.

The local currency traded at an average of 103.34 against the dollar during the session, similar to the level of Monday.

Tuesday was declared a public holiday, when President Uhuru Kenyatta was sworn in for a second term.

The Central Bank of Kenya placed the shilling in the Wednesday trading at 103.35, a slight decline from the previous session's 103.34.

On the other hand, however, commercial banks quoted the currency Wednesday at a new high of 103.15-103.35, from 103.25-103.45 at the close of Monday.

Forex traders in the financial institutions attributed the stability of the shilling against the greenback to rising inflows from foreigners seeking to invest in the debt and stock markets as the political climate stabilizes.

Against the British pound, the shilling weakened to close at 138.23, down from 137.83 at the end of Monday trading.

Analysts have noted that the shilling should remain relatively stable against the dollar in the short term, supported by calmness in the political front following the conclusion of the presidential elections and the apex bank's activities in the market, as there are sufficient forex reserves, currently at 7.1 billion dollars or an equivalent to 4.7 months of import. Enditem