September 13, 2018 / 8:15 AM / 8 days ago

Kenyan shilling weakens over IMF stand-by arrangement

    NAIROBI, Sept 13 (Reuters) - The Kenyan shilling
weakened against the dollar on Thursday due to increased demand
from banks and importers over uncertainty regarding an IMF
stand-by arrangement, traders said.
    At 0743 GMT, commercial banks quoted the shilling at
100.80/101.00 per dollar, compared with 100.75/95 at Wednesday's
close. The shilling spiked at 100.96/101.16 earlier in the
session.
    Kenya secured a six-month extension for its stand-by credit
arrangement of $989.8 million from the International Monetary
Fund in March, and that extension lapses in mid-September.

    "Activity is just panic buying. Market players, banks and
importers are just positioning themselves ahead of the
announcement," said a senior trader from a commercial bank.
    The IMF has preconditioned the extension of the stand-by
credit, used for balance of payments support, on a number of
measures, including the repeal of a cap on commercial lending
rates which was imposed in 2016 but retained by parliament last
month.  
    "If the announcement is positive and the standby facility
remains, the shilling should gain again, but if doesn't, the
shilling should depreciate even further," the trader said.
               ...........................Shilling spot rates
                  .....................Shilling forward rates
                           .......................Cross rates
         ..................................Local contributors
           .......................Central Bank of Kenya Index
          .....................Kenyan Bonds contributor pages
                          ...............Treasury bill yields
        ..................Central bank open market operations
        .........................Horizontal repo transactions
         ,       ................Daily interbank lending rate
              .............................Kenya Bond pricing
             ..................Real time Africa economic data
 <ECI & AFR> ...........................African economic news
          .................................NSE-20 Share Index
          .................................NSE-25 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
  SPEED GUIDES:
                                    
            
 
 (Reporting by John Ndiso; Editing by Clement Uwiringiyimana)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below