The Kenyan Shilling on Thursday’s session weakened to a near five year low against the US Dollar mainly driven by concerns over the economic impact of covid-19.
At 1200hrs on Thursday, Nairobi (EAT), the shilling was quoted at 105.40/50, against Wednesday’s closing price of 104.10/30.
“The local clients are on the same page with Global Clients… Everyone wants cash and they want that cash in dollars,” noted a trader interviewed by Reuters.
Since the outbreak of the coronavirus, the shilling has weakened from 102 earlier this month when the Central Bank of Kenya announced it would commence buying of US dollars in order to progressively increase its foreign exchange levels above normal levels. The bank noted that this move will increase its preparedness to deal with the heightened global volatility and uncertainty.
Kenya’s Ministry of Health has so far confirmed seven cases of the virus as of Wednesday.
The Central bank of Kenya is expected to hold its bi-monthly monetary policy on Monday, March 23, 2020. In its last meeting in January, the bank lowered the benchmark rate from 8.50 to 8.25. The last time it lowered this key rate was in November from 9.0 to 8.50 where it has been for the past two months.
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