Kenyan shilling remained stable against major international and regional currencies in the week ending Friday, June 26. The shilling averaged KSh106.36 against the US Dollar, KSh132.45 against the sterling pound, KSh119.76 against the Euro and KSh99.65 against the Japanese Yen.
Forex Reserves
As of June 25th, Foreign exchange reserves remained adequate at $9,229 million translating to 5.55 months of import cover.
Money Markets
The money market was liquid during the week supported by government payments, which offset tax receipts. Commercial banks’ excess reserves stood at KSh41.1 billion in relation to the 4.25 percent cash reserves requirement (CRR).
The average interbank rate was 3.89 percent on June 25, the average number of interbank deals per day increased to 21 from 11 in the previous week, while the value traded increased to KSh7.1 billion from KSh3.7 billion in the previous week.
T-bills
In the week, CBK auctioned treasury bills seeking to raise KSh24 billion. The government agency received bids totaling KSh59 billion representing a performance of 245.6 percent. CBK accepted KSh13.8 billion of the bids.
The 91-day T-bills sought to raise KSh4 billion and received bids totaling KSh16.481 billion. CBK accepted KSh685.99 million. The 182-day T-bills sought to raise KSh10 billion and received bids totaling to KSh14.025 billion. CBK accepted KSh1.543 billion of the bids. The 364-day T-bills sought to raise KSh10 billion and received bids totaling KSh28.443 billion. CBK accepted KSh11.53 billion of the bids.
CBK says that the government’s net borrowing target for FY2019/20 was KSh409.7 billion and it has been achieved. The latest data from the Treasury indicates that as of 29 May 2020, domestic borrowing amounted to KSh506.981 billion.
