The Kenyan Shilling maintained its stability against the US Dollar on Monday, extending the steady trend observed at the close of the previous week, ending on Friday, September 19, 2024.
According to data from the Central Bank of Kenya (CBK), the Shilling traded at Ksh129.1962 against the Dollar, opening at nearly the same rate as the previous week. "The Kenyan Shilling remained stable against major international and regional currencies during the week ending September 19. It exchanged at Ksh129.20 per US Dollar on September 19, compared to Ksh129.18 per US Dollar on September 12," the CBK statement revealed.
The London Stock Exchange Group (LSG) also reported the Shilling trading within a range of Ksh128.50 to 129.50 per Dollar among Kenyan commercial banks. On Monday, the Shilling was expected to maintain its steady performance, with prospects of further strengthening due to Dollar inflows from tea exporters benefiting from positive auction market results.
Commercial banks forecast the exchange rate to range between Ksh126.50 and 131.50 against the Dollar. The Shilling has exhibited relative stability for months, gaining traction in the first half of 2024 due to increased exports, particularly in tea from the agricultural sector.
Additional support came from easing concerns over Kenya's ability to repay a $2 billion Eurobond that matured in early 2024. This, along with a rise in foreign remittance inflows, further bolstered the Shilling. Data from the CBK showed a 20.6% increase in foreign remittances, rising to USD 427.2 million (Ksh55.7 billion) in August 2024, compared to USD 354.3 million (Ksh46.3 billion) in August 2023.
The bulk of these remittances came from the United States, accounting for 56% of the total inflows. The CBK credited the rise in remittances, foreign exchange market interventions, and tighter monetary policy as key factors contributing to the Shilling's resilience and stability.
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Category: Business
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