Last week, the shilling lost 0.54 per cent against the dollar as against 1.53 per cent against the Euro as importers purchased the dollar in huge quantities.
Mr. Githae added that three companies – two from the oil sector and one from telecommunications – were in the market for $60 million which was a big order for this market, and the Central Bank of Kenya (CBK) was closely monitoring the exchange rate.
The shilling was flat at KSh. 87.55 to the dollar on Monday, with the CBK keeping off the market.
The finance minister said that they look at the public debt, the shilling, and the inflation figures and till that time the dynamics were right.
He said that the Central Bank has been monitoring bank forex trading, especially where the rates quoted were beyond the market average to confirm their authenticity.
The Central Bank of Kenya passed new regulations effective this year that banned commercial banks from starting ‘speculative’ trades that were not supported by ‘an underlying transaction’. Mr. Njeru said that they had seen them and they looked genuine and so they expect the pressure to diminish.
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