Markets

Shilling Ends May at 2.2% High Against Dollar to 130 Units

The Kenya Shilling has demonstrated resilience once again against the U.S. dollar and is retailing at 2.2% higher in the final week of May.

The shilling’s performance has captured the attention of investors and analysts alike – coming a week after President William Ruto concluded his official visit to the States.

Data from the Central Bank of Kenya (CBK) indicates that the shilling traded at 130 units on Friday, less than a week from its opening rate of 133 units on May 27, 2024.

Further Gains for Shilling

The gain is seen as a precursor to further gains, especially in light of anticipated dollar inflows promised to President Ruto while in Washington D.C.

CBK Governor Kamau Thugge predicted the gains in the shilling anchored on the expected inflows when the U.S. begins to actualise its promise to President Ruto.

Shilling Ends Week at 2.2% High Against Dollar to 130 Units
US President Joe Biden welcomes his Kenyan counterpart William Ruto at White House in Washington DC

His sentiments have been echoed by market analyst Rufas Kamau from FXPesa, who spoke to one of the local media houses.

Also Read: Why Kenya Shilling Can’t Hold Grip Against Dollar for Long

“After the president visits the U.S.A, expect more USD inflows and this could strengthen the Kenya shilling further towards 120,” said Kamau.

According to Kamau, the shilling is likely to strengthen further to 120 units as more foreign investments flow into the country.

President Ruto’s successful negotiations in the US secured close to Ksh.600 billion in investments, including key projects like the Nairobi-Mombasa expressway (Ksh.469 billion) and the Coca-Cola beverage plant (Ksh.23 billion).

World Bank Attribution

The World Bank predicted the shilling could gain further against the U.S. Dollar.

World Bank’s attribution of the shilling’s value rise to the recent hike in the base lending rate by the CBK adds another layer of significance to the currency’s performance.

CBK rate stands at 13%, the highest level since 2012, and signifies an effort to curb inflation and stabilize the shilling in the face of external pressures.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button