In the Kenyan banking halls, retail dollar bankers are charging up to ksh 131 with some going at ksh 130. Buying the dollar for retails now rates in between ksh 117 and ksh 119, this high cost of dollar rates is being driven by the scarcity and also the cost of finding the dollar.
I&M bank together with Equity yesterday quoted their rates ksh 130.75 and ksh 130.35 respectively per unit. On the other side cooperative bank is trading the dollar at an all time high of ksh 131.40 per unit as listed in its banking halls.
The scarcity of the dollar is highly driven by the volatile nature of the market exchange rates which has slowed the trade of dollars among international lenders, even though the exchange rates still stands sensitive as most players fear from the central bank reprisals.
Clients from private local sectors are holding onto their dollar stocks, that’s what official data from forex holdings indicates. As of the year ended in July, a record of ksh 905 billion foreign deposits stood in local bans, this is a clear picture of the inefficient distribution and holdings that is causing the shortage of the greenback.
Even though manufactures posted complains of the dollar that saw some cut down operations for a while as they could not purchase raw products, with others leaving the burden to their buyers in order to acquire enough dollars, the case has not been any different.
The regulator, central bank of Kenya has however dismissed the possibility of an equal exchange rate that can develop in the country and level the game claiming the Kenyan market has enough dollars to sustain corporates and foreign importers.
This scramble for the dollar means a higher price as buyers and sellers keeps biding for the highest price and holders regulating their supply waiting for the right market as per their targets.
