CBK ‘warns’ analysts over weak shilling

The shilling remained under pressure yesterday with reports suggesting the Central Bank governor has warned analysts against negative projection of the shilling’s value to the bullish US dollar.

The shilling opened trading at an average of 103.71 buying and 103.91 selling to the dollar, but later depreciated to 104 – the level it touched on Monday.

Bloomberg reported that executives of some of the banks were summoned to a meeting with CBK bosses last week, while others were telephoned and warned against comments that could lead to further slide of the shilling.

Analysts at StratLink said the CBK has enough foreign exchange reserves to cushion against shortages. “Foreign exchange reserves at the Central Bank of Kenya grew strongly through 2016 equipping the market regulator with buffers to arrest potential wild swings by the local unit,” the firm said in a monthly report.

“Whereas the Central Bank’s foreign exchange reserves and import cover are relatively robust.”

Source: http://www.the-star.co.ke/