MARKET UPDATE FOR 03rd August 2020
The shilling was firm on Friday supported by dollar inflows as demand slowly picks up towards end month as the country re-opens from novel covid-19 pandemic. Expected today is 105.00 –107.00.
|INDICATIVE FOREX RATES|
|CROSS RATES||AGAINST KES|
CBK analysis on Friday showed excess liquidity. The regulator was in the market to mop KES. 40Bn in 7 days TAD
|LOCAL MONEY MARKET|
|TREASURY BILLS AND BONDS (MIO KES)|
Fears of a second wave of coronavirus infections have increased demand for safe-haven assets, driving the U.S. dollar on Friday to its best weekly gain in a month. The world’s reserve currency, which made small advances in the North American session, gained 0.54% this week against a basket of currencies to close at 97.61.
The euro was slightly weaker, down 0.14% at $1.119 as EU leaders made no progress in a video-conference on Friday on a 750 billion-euro ($840.8 billion) coronavirus recovery fund that has divided them bitterly for weeks. Sweden, Denmark, Austria and the Netherlands say the proposed recovery fund is too big and the allocation of money not sufficiently linked to the pandemic.
Sterling was on track for its worst week since mid-May after fresh data on Friday showed government borrowing had hit record highs and had exceeded economic output for the first time since 1963; more evidence that the coronavirus-stricken economy was a long way from recovering. The pound was down 0.4% against the dollar at $1.2378.
|LOCAL AND INTERNATIONAL BENCHMARK RATES|
|GBP BOE RATE||0.10%|
|EUR ECB RATE||-0.50%|
|USD FED RATE||0.00%|
|$ LIBOR 6 & 12 Month||0.41450/0.57575|
|£ LIBOR 6 & 12 Month||0.31400/0.50025|
|€ LIBOR 6 & 12 Month||-0.30029/-0.18957|
For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Sylvia Mwangi, Benson Wainaina, Alfred Too, Kenneth Mulandi, Lorna Kageni, Martin Githinji and Ndanu Musyoka
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/550/378/257/558/180
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Whilst every care has been taken in compiling this market update, the Bank will not be responsible for and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.