Central Bank of Kenya monetary committee meets Wednesday even as currencies in EAC hit bottom low against the dollar

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By Winnie Osika

Central Bank of Kenya (CBK) top advisors meet on Wednesday amidst fear that the shilling will continue to slide and plunge the country into an economic crisis.

Though the shilling is the most hit, the other currencies in the EAC are doing no better mainly due to the effects of the euro zone economic crisis.

 

The Kenya Federation of Employers as well as the parliamentary committee on finance has called for urgent intervention to save the shilling form further fall but CBK seems to be running out of options.

Last week, CBK announced that it will sell foreign currency directly to importers, a situation that has created jitters within the banking sector.

During the week ending September 30, the Kenya shilling depreciated against all other East African currencies. On average, the shilling exchanged at Ushs28.32, Tshs16.53, RWF5.95 and BIF12.26 compared to Ushs29.05, Tshs16.53, RwF6.19 and BIF12.77 the previous week.

The shilling also depreciated against major international currencies reflecting increased risk aversion in the international currency market. Against the dollar, the shilling exchanges at an average of Sh100.82 compared to Sh96.71 the previous week.

The shilling depreciated against the Sterling Pound, the Euro and the Japanese yen to exchange on average at Sh157.05 per Sterling Pound and Sh136.47 per Euro and Sh131.98 per 100 Japanese yen compared to Sh150.80 per Sterling Pound and Sh131.54 per Euro and Sh126.29 per 100 Japanese yen the previous week.

 

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