Traders cite remittances and agricultural exports as factors behind shilling’s consistency

After three months of erratic depreciation and Kenyan currency appreciation that caught global attentionthe shilling has found consistency for two weeks.

According to data from the Central Bank of Kenya, for about 14 days, the shilling has been trading at 133 against the US dollar (USD).

On Tuesday, May 7, CBK revealed that the exchange rate of the shilling against the dollar was 133.0434.

The figure was tabulated from average commercial bank exchange rates at market close on Monday.

Former CBK governor Patrick Njoroge holding banknotes (left) and someone counting US$100 bills.

Photo

CBK / Trade Africa

Commercial banks quoted the shilling at 133/134 on Tuesday morning, further demonstrating the consistency of the local currency.

Traders highlight shilling stability He attributed this to foreign exchange inflows from Kenyans working abroad.

In recent times, diaspora remittances have become one of Kenya’s main sources of foreign exchange, generating approximately Ksh671 billion annually.

Additionally, the shilling has continued to show stability against the dollar due to money raised through agricultural exports.

“We are not seeing much in terms of demand, they are waiting for the (dollar exchange rate) to go down,” one trader was quoted as saying. Reuters commenting on the stability of the shilling.

Diaspora remittances have been a key focus for President William Ruto’s administration as they have been identified as a long-term plan to stabilize the shilling.

On April 27, President Ruto commented that he was laying the groundwork to ensure diaspora remittances doubled in less than a decade.

“My intention is that in the next five to seven years we will increase remittances from our diaspora from $4 billion to $10 billion,” he said.

“It will go a long way to ensuring that more Kenyans have the income that sustains our economy.”

President William Ruto addresses a delegation.

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