NAIROBI, Oct. 16 (Xinhua) -- The Kenya shilling remained firm on Monday, not ceding an inch against the U.S. dollar despite a cloud of political uncertainly hanging over the East African nation.
The local currency traded at an average of 103.3 to the dollar, the same level it closed the week last Friday.
The Central Bank of Kenya on Monday placed the currency at 103.28, a firm position the shilling stood in the last trading.
Commercial banks, on the other hand, quoted the currency at between 103.20 and 103.40, which was a slightly improved position from 103.20 and 103.50 on Friday.
Traders in the financial institutions noted that the currency was stable but may take a negative turn in the coming days affected by intense political activities in the country ahead of the Oct. 26 polls and rising dollar demand from importers.
On a year-to-date basis, the shilling has depreciated against the dollar by 0.8 percent. However, according to Cytonn, a Nairobi-based investment firm, the shilling would remain relatively stable against the dollar in the short-term supported by increased diaspora remittances and horticulture revenue.
Diaspora remittances grew by 5.3 percent to 1 billion dollars in seven months to July boosting fallen exchange reserves that last week dropped by 39 million dollars to 7.37 billion dollars. Enditem
