Kenyan Shilling falls to two-year low

Kenyan shilling declined to a two-year low on Thursday against the U.S. dollar weighed down by graft charges facing top Treasury officials amid increased liquidity in the market.

The Central Bank of Kenya quoted the currency on Thursday at 104.03 to the dollar, the level last recorded on June 27, 2017.

The currency had been on the decline in the past weeks, sliding from 100 against the dollar where it started the year, but its downward trend has been accelerated this week by graft charges facing former Treasury Cabinet Secretary Henry Rotich, among others.

The high liquid in the market is largely supported by government payments, according to the apex bank.

But as the shilling declines, the central bank has high levels of forex reserves that stand at 9.6 billion U.S. dollars or six months of import cover to cushion it.

“This continues to provide adequate cover and a buffer against short-term shocks in the foreign exchange market,” said central bank governor Patrick Njoroge on Wednesday.

SOURCE Xinhua