BCN-31 Kenya’s money market liquidity improves

489

ZCZC

BCN-31

KENYA-MONEY-MARKET

Kenya’s money market liquidity improves

NAIROBI, Oct. 6 (BSS/Xinhua) — The Kenyan money market recorded improved
liquidity in the week ending October 3, pushing down the rate at which banks
borrow from each other.

The high liquidity was due to increased government payments that boosted
circulation of cash in the economy, the Central Bank of Kenya (CBK) said in
its weekly brief on Friday.

As a result, the average interbank rate declined steadily to 4.2 percent
on from a high of 6 percent at the start of the week, said the apex bank.

The CBK noted that liquidity conditions had been tight at the beginning of
the week on account of tax remittances by banks before improving to push the
rate down.

The interbank volumes traded consequently decreased from 20.2 billion
Kenyan shillings (about 202 million U.S.dollars) on Sept. 27 to 10.7 billion
on Oct. 3.

BSS/XINHUA/SR/1830 HRS