This archive report was first published on 17 September 2019.
On September 17, 2019, the Kenyan shilling remained stable, despite the Central Bank of Kenya's efforts to mop up excess liquidity from the market.
According to market traders, the shilling's stability was a testament to the effectiveness of the CBK's monetary policies.
Commercial banks quoted the shilling at an average of 103.81 units to the dollar in afternoon interbank trading, slightly weaker than the previous day's closing average of 103.79 units.
The CBK continued its mop-up efforts by purchasing Sh11.65 billion in seven-day repurchase agreements (Repo) at a rate of 8.96 percent, out of bids worth Sh15 billion from banks.
This move was seen as a pre-emptive measure to manage liquidity ahead of a possible large injection of shillings into the market.
Traders noted that the exchange rate remained largely unmoved in the face of such a large liquidity withdrawal, indicating a high degree of market resilience.
