The shilling exchanged at an average of 103.87 to the greenback, the Central Bank of Kenya’s indicative rates showed, a steady level compared to an average of 103.76 on Thursday.
The shilling remained stable against the US dollar on Friday amid thin trade ahead of Tuesday General Election, with analysts saying there has been no precautionary or panicky demand for dollars.
The currency exchanged at an average of 103.87 to the greenback, the Central Bank of Kenya’s (CBK’s) indicative rates showed, a steady level compared to an average of 103.76 on Thursday.
Firms which participated in the Stanbic Bank Kenya Purchasing Managers Index in July expected minimal disruption on the currency, Stanbic #ticker:CFC economist for East Africa Jibran Qureishi said.
“There was a fair amount of cautious optimism amongst the panelists in the event that there is minimal disruption, the currency should continue being range-bound,” Mr Qureishi said on phone.
“There’s also confidence in the Central Bank because they continue to show they are committed and willing to sell if the currency becomes volatile.” The shilling has this year benefited from increased remittance flows, sufficient foreign exchange reserves held by the CBK, little outflows on the Nairobi Securities Exchange by foreign investors and a fairly steady balance of payment.
These have sustained pressure from increased dollar outflows through importation of electoral materials and equipment, maize and sugar.
