Kenyan shilling inches lower on manufacturer FX demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
NAIROBI, April 5 (Reuters) - The Kenyan shilling inched lower against the dollar on Wednesday, as manufacturers sought muted supplies of foreign exchange, traders said. Persistent unmatched foreign exchange demand from fuel importers and the manufacturing industry has caused the shilling to lose 7.4% of its value against the greenback this year, according to Refinitiv data. At 0901 GMT, commercial banks quoted the shilling at 133.10/30, compared to Tuesday's close of 132.90/133.10. The market has seen increased liquidity in the last three weeks thanks to the restoration of the long-dormant interbank market, although not yet at sufficient levels to stabilise the local currency, traders said. "We've been able to get some liquidity on the interbank, but the activity isn't yet back at the level seen before the COVID pandemic. It's a positive step," said a trader at one commercial bank. (Reporting by Hereward Holland; Editing by Bhargav Acharya)

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