The Kenyan shilling was firm against the dollar on Wednesday supported by foreign exchange inflows from portfolio investors and dollar weakness in global markets, traders said.
At 0811 GMT, commercial banks quoted the shilling at 103.70/90, little changed from Tuesday’s close of 103.75/103.95. On Tuesday, Cenral Bank governor Patrick Njoroge said they have kept a keen eye on the forex exchange market to maintain stability of the local currency.
The shilling remained relatively stable between 100 and 103 units to the dollar throughout 2016. Njoroge said stability has largely been maintained using foreign exchange reserves, which currently stand at $6.93 billion (4.5 months of import cover).“We have adequate buffers to support the shilling.
The dollar reserves, together with the precautionary arrangements with the International Monetary Fund continue to provide an adequate buffer against short-term shocks,” he said.