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MARKET UPDATE FOR 23rd March 2020

LOCAL MARKET

USD/KES

The shilling weakened on Monday as market players worried about the impact of the spreading of coronavirus on the economy. Expected trading today is 102.40 –104.40.

EUR1.10251.1326112.90118.24SEK9.53899.941910.3010.94CAD1.39271.403272.9874.96

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 104.90 107.00
GBP 1.1502 1.1905 120.66 127.38
JPY 108.55 111.58 0.9401 0.9857
ZAR 16.204 19.234 5.54 6.60
CHF 0.9769 0.9877 105.21 109.53
KES/UGX 3778 3878 35.51 37.97
KES/TZS 2245 2355 21.14 22.64

MONEY MARKET

CBK analysis on Monday showed excess liquidity. The regulator was in the market to mop Kes. 20Bn in 7 days repo to remain within the set MPC path.

Previous Rate7.310%8.186%9.312%

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 8,071.07 9,246.2 46,038.14
Amount Accepted 2,196.46 2,519.44 17,823.06
Current Rate 7.313% 8.104% 9.100%

GLOBAL MARKETS

The shocking ride in global financial markets showed no signs of easing after U.S. stocks plunged the most since 1987 as President Donald Trump warned the economic disruption from the virus could last into summer, leading to a global recession.

The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 98.155 as investors resumed their rush to hold the world’s most liquid currency.

The Euro which is currently trading at $1.1173 is profiting after the Fed cut as it is also seen as a safe haven over the Pound.

Sterling was down 0.04% on the day trading at $1.2252 and is under pressure, dogged by worries about not only Britain’s exit from the European Union but also its sizable current account deficit.

Bank of England took steps to relieve a shortage of dollars and provide extra liquidity as part of a coordinated global action.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 6.37%
KES CBR 8.25%
GBP BOE RATE 0.75%
EUR ECB RATE -0.50%
USD FED RATE 0.25%
$ LIBOR 6 & 12 Month 0.82138/0.82163
£ LIBOR 6 & 12 Month 0.61113/0.71463
€ LIBOR 6 & 12 Month -0.37971/-0.29786

 

For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Jackline Muchangi, Sylvia Mwangi, Benson Wainaina, Cleophas Makori, Alfred Too, Kenneth Mulandi ,Lorna Kageni and Martin Githinji
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/180/550/378/257/558
Mobile Lines: 0703 058 XXX; EXT.244/221/185/180/550/378/257/558
Email: dealing@boakenya.com

Disclaimer
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.

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