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Market News

Diaspora flows seen lifting the shilling

From Monday, the shilling has remained around 101 units. FILE PHOTO | NMG
From Monday, the shilling has remained around 101 units. FILE PHOTO | NMG 

The shilling firmed up below 101.50 units to the dollar in Tuesday’s trading with the Central Bank of Kenya reporting adequate liquidity in the market.

The CBK put the local unit at 101.2/101.4 at the start of trading, where it stayed most of the day.

Reuters said commercial banks quoted at 101.2/4 Tuesday near the Monday’s closing figure, with traders forecasting that it would strengthen as a result of remittances from Kenyans abroad.

Data from the Central Bank of Kenya showed that in 2017 remittances increased to Sh197 billion from Sh174 billion a year earlier, ahead of tourism earnings that brought in Sh120 billion in foreign exchange.

From Monday, the shilling has remained around 101 units, although it had two weeks ago strengthened to below 100.

“Limited market activity at the start of the week saw the local currency seesaw with in recent ranges against the greenback. Paltry foreign currency inflows from the agricultural sector was gulped by energy sector players, limiting the movement of the shilling against the dollar just above the 101.00 handle,” Commercial Bank of Africa said in its market report.

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