The local currency firmness is good news since it stabilises price of imported goods and services. CRDB Bank said the shilling is however expected to remain stable against the greenback following a match in demand and supply.
Stability also “easing pressure on the dollar from importers,” the bank said in its daily highlight report. On other hand since the beginning of this month the shilling went down slightly by one shilling to 2,187/16.
National Microfinance Bank (NMB) said slight depreciation was noticed to be on higher side on Wednesday, specifically from retailers, tele-companies and manufacturers. “The local currency traded slightly thin Wednesday where there was no significant movement on the shilling,” NMB said in its daily e-market report.
CRDB said the local currency declined against the US dollar closing at an Interbank mean rate of 2187/13, a decline of 0.08 per cent from Monday's close.
The shilling-USD exchange rate, according to BoT, stabilised against the greenback at an average of 2,190/70 per USD, compared with 2,192/40 traded in June 2016. Shilling has weakened against pound sterling by slightly over 25 per cent to 2,399/53 in the last nine and half months, central bank report shows.
The shilling stability was cemented by exports increase that grew by 7.5 per cent to 9,810.4 million US dollar from the level recorded in the year ending July 2015.
“Improved performance was recorded in the export values of travel, manufactured goods and gold while traditional exports declined,” BoT said in latest Monthly Economic Review report issued in August.
While value of import of goods and services declined by 18.3 per cent to 11,003.4 million US dollars in the year ending July 2016. “The decline was due to depreciation of the shilling, which made imports relatively more expensive, as well as substitution of oil for gas in power generation,” BoT report showed.
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