The Central Bank of Kenya (CBK) has lowered the minimum amount that banks can trade in the formal interbank forex market to $100,000 (Sh15.7 million) from $250,000 (Sh39.3 million) following the launch of an electronic trading platform that is expected to improve supply and price discovery in the forex market.
A CBK circular on the new platform, which is known as Electronic Matching Systems (EMS), has also abolished the spread of 20 cents between bids and asks, effectively freeing market participants to negotiate rates depending on supply and demand.
