The Kenyan shilling continues to reverse a downward trend against major world currencies that had persisted for the last year, touching a new high against the U.S. dollar on Valentines Day.
On Wednesday afternoon, the Central Bank of Kenya placed the shilling at 153.5 to the dollar, a rise from a 30-year low of 161.
The shilling has recorded and sustained gains since Feb 8 and is expected to gain further in the coming days as inflows from the Eurobond flow into the country further raising the forex reserves and giving a buffer to the shilling.
On Tuesday, Kenya secured $1.5b billion from creditors through the new issuance of a second Eurobond to help clear its public debt stock. The bond was priced at 9.75 percent with a maturity date set for 2031.
The local unit has also gained against East African currencies, rising against Tanzanian and Ugandan shillings.
The strengthening of the shilling is attributed to an increase in forex reserves from 6.61 billion dollars at the end of 2023 to a new high of 7.13 billion dollars on Feb. 9.
Kenya on Feb. 7 initiated the process to buy back its 2-billion-dollar Eurobonds, which matured in June, with inflows from the sale said to be flowing into the country,
