The Central Bank of Kenya on Thursday said it would expand the number of banks eligible to bid for foreign currency in an attempt to end speculative behaviour by some commercial banks, which has driven the value of the Kenyan shilling downward.
The shilling, which has lost 12.8% since the beginning of the year, gained 1.4% after the announcement and traded at 88.63 shillings against the dollar at 15:17 London time.
The current low levels of the shilling are said to reflect arbitrage and speculat
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