Shilling steady after Central Bank of Kenya dollar sales

The Shilling was firm yesterday after the Central Bank of Kenya (CBK) sold dollars the previous two sessions to meet corporate demand for foreign exchange.

In early trade, the shilling was quoted at Sh102.20/40, little changed from the close of Sh102.25/35 recorded on Tuesday when traders said the CBK had intervened at least three times.

The bank also sold dollars on Monday. “Every time (the shilling) goes up slightly, the CBK is active to sell dollars directly,” said one dealer. “They are keeping the shilling contained at the moment.”

The bank does not usually comment on intervention. The shilling has been under pressure this year from global dollar strength that has hit many emerging market currencies, as well as from domestic issues, such as the widening trade gap and big budget deficit.