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The Kenyan shilling is the only one among the major emerging market currencies and borders to be appreciated in the first half, reveals a Citigroup badysis.
The unit gained two percent while other currencies depreciated or remained at about the same level – for Argentina and Oman. The appreciation corresponds to the improvement in Kenya's current account deficit as well as the overall position of the balance of payments.
Analysts have identified the main causes for the improvement in the value of the shilling – and hence the deficit and balance of payments positions – as related to the sharp increase in remittances and the credit of 200 billion shillings ($ 2 billion) in the accounts of the Kenyan government following the conclusion of a new Eurobond. "19659004" "In addition to the Argentine peso, many other frontiers and emerging currencies weaken dollar during the year (exception: the Kenyan shilling, which has increased 2% since the beginning of the year). The overall Kenya balance of payments surplus nearly tripled in the first three months of the year to 206.9 billion shillings, compared with 54.21 billion shillings in the first three months of the year. quarter, as the financial account benefited.) The losses were greater for emerging markets where currencies declined by 3.8 percentage points than for the frontier markets where the shares weakened by 0.65 percentage points. percent
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