The dramatic gain on Wednesday lifted the local unit to its strongest level since November last year while wiping out all the losses this year. This means that the shilling has now appreciated for 11 straight days to trade below Ksh153.75 at some commercial banks. The record appreciation of the shilling is set to lower import costs in local currency terms as importers are required to part with less for the same volume of goods ordered. Kenya’s move to buy back part of its Ksh313 billion ($2 billion) Eurobond notes maturing in June has settled investor nerves, anchoring the multi-day shilling rally by propping up foreign currency inflows. It is difficult to tell where the shilling is likely to stabilise, especially if the CBK opts to intervene,” added Ms Swakei.

Source: Daily Nation February 15, 2024 18:45 UTC