Dollar to shilling

Kenyan Shilling Makes Historic Gains Against US Dollar: Central Bank Takes Action to Curb Volatility

Kenya's shilling gave up some gains after the central bank bought dollars to stabilize volatility during afternoon trading. Find out what's driving the significant strength of the Kenyan shilling against the American dollar.

Kenyan shilling recently experienced a notable surge against the US dollar, with the Central Bank intervening to control volatility. The shilling's strength has been attributed to an influx of greenback from global lenders, as well as heightened local demand due to infrastructure bonds. The currency posted its strongest gain in 12 years, with commercial banks offering high exchange rates, showcasing a significant shift in the market. Retired Governor James Ongwae praised President Ruto for the shilling's remarkable performance.

The continuous rally of the Kenya shilling has raised investor confidence and marked a turning point for the currency, contrasting its previous downward trend. After a $1.5 billion bond issue, the shilling became Africa's top performer in 2024 following a challenging year. Amid heightened local interest and improved reserves, the shilling gained ground significantly, eliciting positive reactions from traders and investors alike.

**Interesting Facts:** - The Central Bank of Kenya played a crucial role in supporting the shilling's rally by purchasing dollars to stabilize volatility. - Retired Governor James Ongwae applauded President Ruto for his policies which contributed to the shilling's strength.