Sh1,000 Note Recall Pressure a Risk for Shilling — Analysts
MONDAY SEPTEMBER 9 2019
Kenya Daily Nation
CBK governor Patrick Njoroge with the old and new Sh1,000 bank notes. PHOTO | SILA KIPLAGAT | NMG
In Summary
An analysis by Sterling Investment Bank indicates that Kenyans are seeking to hold more of foreign currency.
By GEOFFREY IRUNGU
The risk of the Kenyan shilling depreciating is high in the short-term due to dollar demand as the Central Bank of Kenya (CBK) removal of old Sh1,000 currency notes from the circulation draws to a close.
An analysis by Sterling Investment Bank indicates that Kenyans are seeking to hold more of foreign currency.
At the same time there has been an increase in the amount of currency in Kenyan shillings in circulation, which in turn weighs against the value of the unit.
Banks gained Sh25 billion in new deposits after the demonetisation exercise began.
Already the Kenyan shilling has seen its value fall in the past month to exchange at an average of 103.83 units to the US dollar as of last Friday.
On July 15, the local currency was exchangeable with the US currency at an average of 102.95 units before falling to 103 units and touching 104 units at some point.
Kenya Daily Nation
CBK governor Patrick Njoroge with the old and new Sh1,000 bank notes. PHOTO | SILA KIPLAGAT | NMG
In Summary
An analysis by Sterling Investment Bank indicates that Kenyans are seeking to hold more of foreign currency.
By GEOFFREY IRUNGU
The risk of the Kenyan shilling depreciating is high in the short-term due to dollar demand as the Central Bank of Kenya (CBK) removal of old Sh1,000 currency notes from the circulation draws to a close.
An analysis by Sterling Investment Bank indicates that Kenyans are seeking to hold more of foreign currency.
At the same time there has been an increase in the amount of currency in Kenyan shillings in circulation, which in turn weighs against the value of the unit.
Banks gained Sh25 billion in new deposits after the demonetisation exercise began.
Already the Kenyan shilling has seen its value fall in the past month to exchange at an average of 103.83 units to the US dollar as of last Friday.
On July 15, the local currency was exchangeable with the US currency at an average of 102.95 units before falling to 103 units and touching 104 units at some point.
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