By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Dollar market distortion eases after President Ruto directive
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Dollar market distortion eases after President Ruto directive
Business

Dollar market distortion eases after President Ruto directive

hallanaija
Last updated: April 26, 2023 5:42 pm
hallanaija
2 years ago
Share
dollar
Central Bank of Kenya Governor Patrick Njoroge
SHARE

The biting dollar shortage has eased following the revival of the interbank currency market on orders from the State House.

Bulk buyers of dollars have witnessed increased availability of the greenback in recent days, a marked departure from market conditions that saw banks run out of the US currency on some days as others imposed a daily cap on dollar purchases of as little as $5,000.

The changes followed a directive from President William Ruto on March 22 for the revival of the interbank foreign exchange market in an effort to remove distortions in the market that had exacerbated the shortage of foreign exchange.

dollar
Central Bank of Kenya Governor Patrick Njoroge

The interbank market for hard currency has turned dormant in recent years, due to what traders said was aggressive policing by the central bank, which made it difficult to do deals.

The lack of a vibrant interbank foreign exchange market has partly been blamed for a biting shortage of hard currency that has even forced the government to seek longer credit periods for essential imports like petrol.

It has also given rise to a parallel market, with money-changers quoting a different foreign exchange rate to the official central bank one, with a divergence of over Sh10 per dollar.

READ MORE  Google Goes Big On ChatGPT-Style Chatbot

Now, the spread between the official and open market rates has narrowed to an average of Sh6 per unit from Sh13 in early March.

Ruto uses tax breaks for new businesses to entice US investors
Civicon faces pay demand in KenGen contract row
Teachers Threaten To strike In April Over Sh54 billion Capitation Debt
Economic headwinds facing Safaricom’s Ethiopia venture
NMG shareholders approve Sh285m dividend, share buyback
Share This Article
Facebook Email Print
Previous Article shakahola Shakahola death toll hits 98 as eight more bodies of children exhumed
Next Article Liberia Kenyan tech firm modernises Liberia’s revenue collection
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Chelsea are planning a contract until 2031 for Xavi Simons. Personal terms are verbally agreed, with written details set to be finalised next week.
  • Liverpool finally have their new Philippe Coutinho with £100m transfer inevitable
  • RB Leipzig Close in on Harvey Elliott as Liverpool Midfielder Eyes Xavi Simons Role
  • Jay-Z officially becomes World’s richest musician with $2.5 Billion net worth
  • Mombasa blogger who was sodomised decries abandonment, says life in danger

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?