The Kenya shilling is on a second week losing streak against the US dollar. The local currency is losing gains it had made against the US dollar. Two weeks ago, the shilling appeared ready to officially get into the 120s.
However, officially, according to key indicative averages data from the Central Bank of Kenya, the shilling only manage to gain as high as 130 to the dollar. IÂ its second week of loses the shilling was yesterday officially quoted by the CBK at 132.3 to the US dollar.
At the same time, the shilling was quoted at 163.3 against the Sterling Pound and 140.9 against the Euro.
These rates, though, are the averages in the market and a re different from what each commercial bank or forex bureau traded.
“The exchange rate is calculated as the weighted average rate of the registered spot trades in the interbank foreign exchange market during the trading session within the trading platforms,” the CBK states.
According to the CBK, individual forex bureaus and commercial banks set their own rates, which are held to reasonable levels of variance and margins due to competition in the market.
“Typically, consumers looking to exchange smaller amounts will find more favourable rates at forex bureaus, while those looking to exchange larger amounts through foreign accounts will find better rates at commercial banks,” the CBK states.
For instance, at Satellite Forex Bureau yesterday, the US dollar was sold at between 137.5 and 139. The Sterling Pound traded at 165 buying and 172 selling. The Euro was quoted at 142.5 buying and 147 selling.
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At Pacific Forex Bureau, the dollar traded at 136 buying and 138.5 selling. The Euro traded at 142 buying and 146 selling while the Sterling Pound traded at 164 buying and 169 selling.
Among commercial banks, the NCBA Bank traded the US dollar at 132 buying and 138 selling. The Sterling Pound was placed at 161.35 buying and 175.26 selling while the Euro was placed at 138.54 buying and 151.17 selling.