The Kenya shilling on Wednesday hit a fresh all-time low at 108.20 to the US dollar compared to 107.9400 on Tuesday.
This is largely attributed to increased dollar demands from importers.
In an email to Khusoko, the Central Bank of Kenya (CBK) on Wednesday had quoted the currency at a mean rate of 107.8797 against the US dollar, buying at KSh 107.7800 and selling at KSh 107.9794 against the greenback.
It’s no longer Teflon as I said a few sessions ago. It’s in fact perilous now just on chart analysis.
— Aly-Khan Satchu (@alykhansatchu) July 22, 2020
The exchange rate released by the Central Bank of Kenya is an indicative rate, meant to help those exchanging currencies gauge the value of the shilling on any given day.
“The Central Bank does not set the exchange rate; it is determined by the market, or supply and demand. Individual forex bureaus and commercial banks set their own rates, which are held to reasonable levels of variance and margins due to competition in the market,” CBK emphasises.
The central bank has resorted to selling dollars to banks to ca,l the volatility.