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MARKET UPDATE FOR 19th March 2024

LOCAL MARKET

USD/KES

The Kenyan shilling was steady on Monday with dollar inflows and importer demand matching.

Expected range today is 130.00 —135.50

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 130.00 135.50
GBP 1.2563 1.2964 162.06 176.96
EUR 1.0714 1.1018 138.21 150.40
JPY 148.78 151.79 0.8499 0.9175
ZAR 17.488 20.498   6.29 7.81
CHF 0.8834 0.8939 144.31 154.52
CAD 1.3505 1.3607 94.80 101.07
KES/UGX 3830 3940 28.06 30.54
KES/TZS 2495 2605 18.28 20.19

MONEY MARKET

CBK analysis on Monday showed a skewed market. The regulator was therefore in the market for KES70BN in 7 and 14 day reverse repo in order to remain within the monetary policy set by the MPC.

LOCAL MONEY MARKET
TREASURY BILLS AND BONDS (MIO KES)
Tenor 91-day 182-day 364-day
Amount Offered 4,000.00 10,000.00 10,000.00
Bids Received 14,055.87 3,603.46 4,774.54
Amount Accepted 13,777.55 3,280.70 2,788.13
Current Rate 16.6976% 16.8900% 16.9889%
Previous Rate 16.6597% 16.8477% 16.9845%

 

GLOBAL MARKETS

Most Asian currencies fell on Tuesday as traders remained on edge before a Federal Reserve meeting this week, while the USDJPY weakened sharply after a historic rate hike by the Bank of Japan. The DXY rose about 0.2% in Asian trade, hitting a near two-week high in anticipation of a Fed decision on Wednesday.

The EUR/USD pair edges lower to multi-day lows around 1.0870 on the firmer USD during the early Asian session on Tuesday. The ECB decided to keep borrowing costs at a record high at its March meeting. Nonetheless, the central bank policymakers signaled progress in easing inflation and began discussions about the rate cut. Looking ahead, market players will keep an eye on the German and Eurozone ZEW Survey on Tuesday.

The GBP/USD remains on the defensive near 1.2726 amid the stronger USD and risk-off mood. UK inflation is moderating, but the BoE remains cautious in its approach until the CPI returns to the 2% target. The BoE is likely to leave interest rates unchanged at 5.25% on Thursday. Markets turn cautious ahead of the central bank meetings, including the Fed and BoE interest rate decisions.

Source: Reuters.

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 6.30%
KES CBR 13.00%
GBP BOE RATE 5.25%
EUR ECB RATE 4.50%
USD FED RATE 5.50%
SOFR O/N RATE 5.31%, 3.908%, 5.1888%
BRENT OIL ($/BARREL) 86.70
MURBAN CRUDE ($/BARREL) 86.97

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For firm quotes and more information on other treasury products kindly contact our treasury team
Treasury team: Milton Onyuna, Martin Githinji, Lorna Kageni, Musa Ongori,
Dennis Ingolo, Elizabeth Kiarie, Brian Gachanja and Oliver Kilonzo.
Telephone Contacts: 020 3275 XXX; EXT.244/558/257/185/378/245/221/526
Mobile Lines: 0703 058 XXX; EXT.244/558/257/185/378/245/221/526
Email: dealing@boakenya.com
Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for any 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.

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