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Shilling hits Sh130 amid rising demand for dollars
The shilling’s prolonged peg at the 129 level was largely driven by a fairly balanced market in terms of supply and demand of hard currencies, aided by open market operations by the CBK that included dollar purchases and mop-ups of shilling liquidity to maintain the equilibrium.
The shilling’s average exchange rate against the dollar has touched the 130 level for the first time since August 2024, on the back of a gradual depreciation since the start of the Iran war at the end of February.
In the spot interbank market on Wednesday afternoon, the dollar traded at Sh130.0 per unit, having weakened slightly from Sh129.93 at close of trading on Tuesday.
