Sign In or Register | Thursday, June 20, 2019
AfricaTeam,   1/10/2017 6:58:56 AM Add AfricaTeam as a Friend | Send Message
Africa See Profile
Kenya
Kenya warns forex traders against making comments or forecasts about the shilling

Nairobi - Kenya’s central bank warned bankers and traders against making comments or forecasts about the shilling that it deems too negative amid the currency’s worst run of losses since 2006, according to people familiar with the matter.

Executives from some of the country’s biggest lenders were summoned to meetings with policy makers last week, the people said, asking not to be identified because they aren’t authorized to speak about the issue. Others were telephoned individually and warned against making comments the regulator says are fuelling the shilling’s decline, they said. Grace Okara, the central bank’s communications director, acknowledged by phone that she’d received an e-mailed request from Bloomberg for comment, without responding to the questions.

 

Central bank officials blame speculators for the slide in the currency of East Africa’s largest economy, and told bankers to let the shilling be guided by market fundamentals, the people said. The central bank’s stance is that the more people comment on the currency’s movements, the steeper its decline, they said.

Read also: SA's Zuma touts opportunities in Kenya

Kenya’s shilling has weakened every trading day since December 23, according to data compiled by Bloomberg. The currency depreciated as the dollar strengthened after the US Federal Reserve raised interest rates and as investors wary of previous post-election violence in Kenya grow increasingly cautious ahead of a presidential vote in August.

 

The warning by the central bank echoes its criticism of lenders in 2011, when the currency fell to a record. That year, former Governor Njuguna Ndung’u accused banks of using funds from its overnight discount window to place speculative bets on the the shilling.

Market fundamentals

The shilling closed 0.1 percent weaker at 103.90 in Nairobi on Monday. It may depreciate to 110 per dollar by the end of the year, as the central bank has limited capacity to support the currency because of falling reserves, Cytonn Investments Ltd. investment manager Martin Oduor told reporters in the capital, Nairobi, on Monday. Traders have also cited increased demand for dollars by fuel importers as oil prices rise.

 

Kenya’s foreign-exchange reserves declined to $7.1 billion by Jan. 5 from $7.8 billion in October after the central bank intervened to support the shilling in the fourth quarter of last year, Cytonn said in a research note.

 

 

“The central bank does not have the power or the capacity to support the shilling,” Oduor said Monday.

Tags:Kenya warns forex traders against making comments or forecasts about the shilling
Bookmark and Share Email Email to Friends Print Print
0
Comments(4)
Comments
Add as a Friend    Send a Private Message    See Profile   
Champara
Kampala
Uganda
Freedom of speech!!!!. How is he gonna control peoples mouths.
Reply    Favorite    Flag as Abusive    Posted at: 1/10/2017 4:24:22 PM
Add as a Friend    Send a Private Message    See Profile   
southboy

Great

Reply    Favorite    Flag as Abusive    Posted at: 1/14/2017 4:07:32 AM
Add as a Friend    Send a Private Message    See Profile   
southboy

3rd

Reply    Favorite    Flag as Abusive    Posted at: 1/14/2017 5:14:42 AM
Add as a Friend    Send a Private Message    See Profile   
southboy

4th

Reply    Favorite    Flag as Abusive    Posted at: 1/14/2017 5:31:20 AM
Please Sign In  or Register  to post a comment.
UserName:
Password:

 
Facebook Twitter YouTube Instagram Linkedin African Music
Most Popular



Push
Post a New Story from your Account, then Vote for it Here by clicking Push
Latest Forums
CountryTopicComments
Kenya ‘Kenya is the hotbed where all the writing happens. There is high unemployment and a job working from home is coveted. They have good English and low overheads. ‘There are thousands of people in Kenya whose job is to write essays for cheating students. There are several writers in every apartment block.’      0
Madagascar What part of Africa (City/Town) would you guys love to travel to? What would be the ideal price from your location, to your intended destination bearing in mind things like cost of living & other expenses?      0
Mozambique In 2004 A summit of African leaders was thrown into confusion when Mozambique's President Joaquim Chissano addressed the meeting in an African language "Swahili."      1
Egypt Which African team do you expect to progress farthest in the 2018 FIFA Soccer World Cup in Russia?      2
Morocco Morocco Loses 2026 World Cup Hosting Bid To USA, Canada, and Mexico      1
Tanzania Tanzania's biggest online forum "Jamii Forums" @JamiiForums forced to shut down temporarily because of Tanzania Communications Regulatory Authority (TCRA)      1
Latest Polls
Links
Tags
    Nigeria    Kenya    
South Africa    Ghana    
Egypt    Ethiopia    Zimbabwe    Uganda    Tanzania    
Africa    Kenya a Hot bed of Investments    Test    Pope Francis On Safari In Kenya    Malawi    Sudan    The 2nd Pan-African Cultural Festival Photos    Tunisia    2010 World Cup Draw: Which Country Has the Hottest Fans?    Somalia    
Site Map | Help | Send Feedback | Contact us | User Agreement | Privacy | About us | Advertise
Copyright © 2016-2017 Africa Updates Inc. All rights reserved