By GEOFFREY IRUNGUMore by this AuthorThe Kenyan shilling Thursday traded at a six-week high, hitting an average of below 102 units to the dollar as tight liquidity conditions continued to prevail in the money market. The shilling’s liquidity remained scarce with the interbank rate elevated as the banks sought to keep their ratios in line with the prudential requirements as the year concludes. Reuters news agency quoted traders saying that there was flat demand for the dollar as banks sold dollars to get Kenyan shilling liquidity to meet the statutory requirements. “The Kenyan shilling extended gains against the dollar on Thursday due to tight money market liquidity as banks sold dollars to meet shilling reserve requirements amid flat dollar demand from oil importers,” Reuters reported. They must also show at least 20 per cent liquid assets as they close the year.

Source: Daily Nation December 20, 2018 18:11 UTC