CBK signs up for World Bank plan to curb currency swings

Treasury has signed up for a new World Bank-fronted bonds trading plan, aimed at helping the Central Bank of Kenya to diversify its forex reserves mix and cushion the shilling from the wild swings it has been experiencing during times of economic hardship.

The plan, which kicked off early last year, has seen the Central Bank spend $1.05 billion (Sh84 billion) of its reserves in the purchase of foreign currency denominated bonds from the World Bank in an unprecedented move whose full import the market is yet to take in.