Kenya’s shilling gained against the dollar on Wednesday, bolstered by market expectation the east African country will secure a $1 billion disbursement from the International Monetary Fund (IMF), and a lull in importers’ forex demand, traders said.
At 0840 GMT, commercial banks quoted the shilling at 130.50/131.50, compared to Tuesday’s closing rate of 132.00/133.00.
Kenya’s President William Ruto said he expects the country to secure a green light for the IMF’s latest tranche of funding, after it received a $941 million lending boost in January.
Ruto told Reuters IMF officials would arrive on May 9 for a review.
“The shilling’s strengthened because of a combination of positive sentiment because of the IMF meetings kicking off, but also importers are playing very cautiously, only buying dips,” said a trader at one commercial bank.
Kenyan shilling firms to new 1-year high
“I think we’ve entered a range-bound phase around 130-140 (against the dollar). We’re entering a level of stability.”
The shilling has gained almost 20% since the start of the year, according to LSEG data, making it one of the best-performing currencies in the world.
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