Hit by reduced diaspora remittances as well as declining inflows from exports and a stagnant tourism sector, the Kenya Shilling has continued to decline against the US dollar.
When forex markets opened on 15th September 2020, commercial banks posted the Shilling exchange rate against the dollar at KSh108.75/95, compared with Monday’s closing rate of KSh108.65/85.
” This gradual depreciation will continue throughout the rest of this year. We don’t expect much from the MPC in terms of Kenya Shilling supportive policy. CBK is unlikely to raise the policy rate, a move that has so far failed to attract any dollar inflows,” said Reginald Kadzutu, Head of Retail, Zamara.
Since Kenya reported the first positive coronavirus case in March this year, the Shilling has been on a slide against the US dollar from KSh 101 in March to KSh 106 per dollar at the end of April to KSh 108.20 in July 2020.
According to Trade Economics, a global online platform that provides historical data, economic forecasts, news, and trading recommendations, the Kenyan Shilling is expected to trade at KSh108.81 against the dollar by the end of this quarter.
“Looking forward, we estimate it to trade at 109.59 in 12 months, said the Trading Economics in its forecast.
The Central Bank of Kenya(CBK) quoted the Kenya Shilling at a mean rate of 108.5559 against the US dollar, buying at 108.4559 and 108.6559 selling.
These daily indicative rates reflect the average buying and selling rates of the major participants in the foreign exchange market at the open of trade every day.