CBK seen holding rates on easing inflation, forex pain The multi-lateral lender’s observations come as the CBK holds its interest rate-setting meeting today on the backdrop of a marginal tick up in inflation from five percent in April mainly on higher food prices. Non-food, ...
Dollar shortage sparks parallel exchange rates May 31, 2022 -5 min read Economy Dollar shortage signals price hikes on local goods Apr 14, 2022 -3 min read “The [forex] market generates and distributes something like $2 billion every month. So if you have somebody or a sector which ...
However, traders say that the daily movement in depreciation as per the CBK’s official rate has been widening in recent days, helping close the gap between the official and the retail average rates in banks. Read:Kenya's monetary policy behind curve In the past one month, ...
The move was meant to make Kenya’s financial assets attractive to foreign investors, in the process attracting dollar inflows, which would support the currency in the forex market. These are the inflows that the IMF reckons are under threat if the country lowers its interest rates....
The CBK move may limit the flow of dollars to other players such as the more than 70 foreign exchange bureaus that are regulated by the CBK or businesses and individuals seeking such money without having to go through banks. Foreign exchange bureaus and MRPs generally offer better rates...
Through the interbank forex market, banks can trade hard currency with one another at rates that determine the official or spot rate. The IMF is appreciating that letting the local currency depreciate will come with adjustment costs in terms of higher inflation and public debt. ...
“The global tightening stance [raising of policy interest rates] by the Fed [the Federal Reserve or central bank in the US] has led to US dollar gaining strength and subsequently, outflows from emerging and frontier markets such as ours,” said a market analyst for a firm with presence...