Shillings hits new low in 3years


08 Jul 2015 | by David Karani
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Shillings hits new low in 3years

The Kenya shilling has slumped to a low of more than sh100 against the US dollar and this is the lowest the shilling has exchanged to the dollar since October 2011, when it dropped to 107.As early as when commercial banks opened the doors Tuesday, the shilling was exchanging at 99.95/100.15 to the dollar, compared to 99.70/80 it traded on Friday.Dr Patrick Njoroge, Central Bank of Kenya (CBK) Governor, chaired his first Monetary Policy Committee (MPC) meeting Tuesday.........

The Kenya shilling has slumped to a low of more than sh100 against the US dollar and this is the lowest the shilling has exchanged to the dollar since October 2011, when it dropped to 107.As early as when commercial banks opened the doors Tuesday, the shilling was exchanging at 99.95/100.15 to the dollar, compared to 99.70/80 it traded on Friday.Dr Patrick Njoroge, Central Bank of Kenya (CBK) Governor, chaired his first Monetary Policy Committee (MPC) meeting Tuesday.

Dr Njoroge will be discussing the monetary policy as the substantive governor since the tenure of Professor Njuguna Ndung’u came to an end in March. The previous emergency MPC meeting last month which was held without a substantive governor was chaired by Deputy Governor Dr. Haron Sirima.During the meeting, the committee raised the Central Bank Rate (CBR) by 1.5 percent from 8.5 percent to 10 percent, arguing it would cool down the increasing depreciation of the shilling.

Among issues Dr Njoroge is expected to tackle include the creeping inflation, which topped seven percent in June, and the depreciating shilling that has since January 2015 lost its value by about 10 percent to the dollar.Economy watchers are keen to see what the governor will do to achieve faster growth of the economy as well as ensure the inflation rate is low, among other things.


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