by nmaithya2004 on 29/09/11 at 9:44 am
The Kenya shilling is finally beginning to reflect the impact of the gauntlet laid down by the Central Bank of Kenya recently.
The Kenya Shilling for the first time in four days traded below the 100.00 shillings mark to the dollar, less than two days after the Central Bank indicated plans to sell dollars direct to the Importers. The dollar traded between KShs 99.00 and 98.00 for long periods of the day, displaying a great improvement compared to the exchange rate witnessed two days ago.
Having cautioned the commercial banks over the rising cost of dollars in the country, the Central Bank can now breathe a sigh of relieve from what had looked like frightening future for the Kenyan shilling. Initially it did seem as though the Kenyan shilling/U.S dollar exchange rate was going to hit the roof after trading at a rate of 105.00 shillings per U.S dollar earlier on in the week.
Analysts had even predicted a rate of Kshs 110.00 to the U.S dollar, raising fears as to how far the Kenya shilling could go on a free fall. However, just like any other kind of prediction, this has thus far remained to be just a prediction and nothing more, to the delight of several importers; thanks to the Central Bank of Kenya, however late the action came.
It now remains as to how long the Kenya shilling U.S dollar can sustain the current exchange rate of below 100.00 shillings per U.S dollar.