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| Ksh gains against major global currencies |
The Kenya shilling recorded further gains against major global currencies in the week before mid-June 2024. Kamau Thugge (c) is the governor of the CBK. Kenya’s and US dollar legal tenders used for illustration.According to Central Bank of Kenya (CBK) disclosures for the week ending June 14, the Kenya shilling remained stable, gaining over KSh 2 compared to the other week. “The Kenya Shilling remained stable against major international and regional currencies during the week ending June 13. It exchanged at KSh 128.46 per US dollar on June 13, compared to KSh 130.72 per US dollar on June 6,” CBK reported. The CBK Indicative Exchange Rates are the average exchange rates for major foreign currencies against the Kenyan shilling provided by the CBK and calculated from the average rates reported by commercial banks in Kenya. Kenya shilling exchange rates against major global and regional currencies. Source: CBK. Source: UGC In forex markets, the exchange rate for the shilling against the dollar was also reported around KSh 128. Kenya’s forex reserves Additionally, the CBK has increased its usable foreign exchange reserves following a drop to 3.6 months of import cover in April. “The usable foreign exchange reserves remained adequate at USD 7,012 million (3.7 months of import cover) as of June 13. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” said CBK. The official foreign exchange reserves (USD Million) over the last four weeks. Source: CBK. Source: UGC Kenya shilling performance in forex markets Earlier, TUKO.co.ke reported that the Kenya shilling appreciated in the forex markets, with exchange rates closing at KSh 130.0433 per US dollar on June 7, an improvement from KSh 131.87 per US dollar on May 30. The CBK maintained base lending rates at 13%, one of the highest in Kenya’s history, which has strengthened the Kenya shilling and contributed to lower inflation rates. Economist Daniel Kathali told TUKO.co.ke that higher base lending rates attract foreign investments in Kenya shilling-denominated assets.