Kenyan shilling reverses decline against global currencies
Display of some of the new look shilling Kenyan currency notes on June 3, 2019. (Photo by SIMON MAINA / AFP)
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The Kenyan shilling has reversed a downward trend against major world currencies that had persisted for the last year, touching a new high against the U.S. dollar on Tuesday.
The Central Bank of Kenya placed the shilling at 158.6 to the dollar, a rise from a 30-year low of 161.
The shilling has recorded and sustained gains since February 8 and is expected to gain further in the coming days, according to the apex bank.
Against the sterling pound, the shilling exchanged at a new high of 200.1 and the euro at 170.8 on Tuesday, said the bank.
The local unit has also gained against East African currencies, rising against Tanzanian and Ugandan shillings.
The strengthening of the shilling is attributed to an increase in forex reserves from 6.61 billion dollars at the end of 2023 to a new high of 7.13 billion dollars on February 9.
Kenya on February 7 initiated the process to buy back its 2-billion-dollar Eurobonds, which matured in June, with inflows from the sale said to be flowing into the country, further raising the forex reserves and giving a buffer to the shilling.
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