Best in Africa – Kenyan Shilling Soars On The Continent After Unbelievable Growth Streak
Following its 15-month growth streak, the Kenyan Shilling has been rated as Africa’s best currency by Business Insider.
According to a report from the New York City-based multinational financial and business website, the Shilling has risen to levels not seen in over a year.
The currency, which is currently trading at Ksh128 against the US dollar, has made significant gains, reaching a level last seen in March 2023 before falling precipitously.
“The Kenyan shilling has recently risen to levels not seen in over a year. The currency rose to a 15-month high against the US dollar. The last time the currency was this strong was in March 2023. From Ksh161/$ to now Ksh128.66/$, the Kenyan Shilling remains one of the best-performing currencies on the continent,” reported the Business Insider.
This rating of the shilling as the best-performing currency in Africa follows a similar rating by the World Bank in April of this year.
The shilling began its upward trajectory in February 2024, following the issuance of a $2 billion Eurobond that was oversubscribed by investors.
According to the Bankers’ Association, the Eurobond’s oversubscription boosted investor confidence, causing the shilling to rise.
Furthermore, the 15-month growth spike has been attributed to increased foreign exchange inflows from tea and coffee exports.
Another factor contributing to the shilling’s rise against the dollar in 2024 is an increase in diaspora remittances.
Remittances peaked at Ksh53.8 billion (USD 412.4 million) in January of this year, and have continued to rise in recent months.
However, speaking about the shilling’s performance, the Central Bank Governor, Kamau Thugge, at a Monetary Policy Committee meeting in June stated that the shilling was expected to remain steady without further declines or increases.
“We don’t see significant weakening or significant strengthening, there should now be stability in the exchange rates,” Thugge reiterated.
Best in Africa – Kenyan Shilling Soars On The Continent After Unbelievable Growth Streak
