CBK Sets Dollar-Shilling Exchange Rate Ahead of EPRA Fuel Review.
CBK Sets Dollar-Shilling Exchange Rate Ahead of EPRA Fuel Review: The Central Bank of Kenya has set the US Dollar to Kenyan Shilling exchange rate at Ksh158.66 ahead of tomorrow’s fuel review by the Energy and Petroleum Regulatory Authority (EPRA).
However, CBK’s current exchange rate is contrary to commercial banks and other financial entities which set the rate at Ksh156, Ksh157 and others at Ksh158 as the shilling continues to gain strength against the dollar.
This comes after CBK underscored that the shilling will be stable in February and March, attributing the gain to favourable diaspora remittances and the thriving Tourism industry.
The shilling has been recording a historic high since 2021, gaining 1.8 per cent against the dollar in five days of consecutive growth.
CBK stated,”There is a need to adjust the monetary policy stance to address the pressures on the exchange rate and mitigate second-round effects.”
Last month, Energy CS Chirchir noted that the authority procured the country’s oil products using a rate 6 units higher than the rate published by CBK.
“For the month obtained, why is one bank opening the spread at Ksh160 to the Dollar while the market should be at Ksh153?” Chirchir questioned.
“What EPRA will do as an independent regulator, because I’m not here to give directives to an independent body, is to write to CBK,” he added.
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