Banks earn margins of up to 10pc in forex transactions

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Kenyan banks are earning margins of up to 10.5 percent on foreign currency transactions. PHOTO | SHUTTERSTOCK

Kenyan banks are earning margins of up to 10.5 percent on foreign currency transactions, benefitting from increased demand for hard currencies.

A spot check by Business Daily on Tuesday showed the country’s biggest banks are enjoying spreads — the difference between the price at which they are buying and selling the US dollar — in the range of 3.4 percent to 10.5 percent.

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