Dollar shortage sparks parallel exchange rates

Money-dollars

Kenyans were holding onto a record Sh905 billion worth of dollar deposits in local banks as at July. FILE PHOTO | NMG

The shortage of dollars is triggering the emergence of parallel exchange rate that has seen lenders buying and selling well above the printed official rate, the manufacturers' lobby has warned.

The Kenya Association of Manufacturers (KAM) said on Monday its members, the biggest importers of goods, were buying the dollar at more than Sh120 compared to the central bank’s official exchange rate of 116.81 units as of Friday.

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