On Thursday, May 30, experts from the Economic Intelligence Unit (EIU) revealed that the Kenyan Shilling is expected to trade at Ksh100 in September this year.
According to the market analysts from the global institutions, the Kenyan currency alongside other local currencies is expected to hit pre-pandemic levels last seen in 2020.
Per the analysts, the Shilling will gain against the dollar since the US Federal Reserve is expected to reduce its policy rate. The Fed will lower this rate beginning in September after postponing the initial date in June.
Currently, the rates stand at 5.5 per cent which is an increase from July last year's 5.25 per cent.
These rates made the US greenbuck strengthen against other currencies such as the Shilling which hit a record high in January 2024. It was trading above Ksh161 against the dollar.
As the Shilling weakened in the first months of 2024, prices of basic commodities subsequently shot up.
The government had vowed to ensure the Shilling steadied against the Dollar within a few months and trade for as low as Ksh115.
"I assure you that the shilling has been stabilising, you saw where the dollar was. Now you will see it strengthen even further like never seen before," President William Ruto stated in February.
This prediction came after the Central Bank of Kenya (CBK) released data for Thursday indicating that the Shilling was trading at Ksh131.87 against the Dollar.
Over the week, the Shilling was fluctuating going for Ksh131/132 against the greenbuck. Data from CBK indicated that on Wednesday the exchange rate was Ksh132.71, on Tuesday it was Ksh132.41 and Ksh132.03 on Monday.
After the visible decline, the CBK intervened and began to sell the US Dollar in small amounts which supported the local currency.
Earlier this year, the World Bank ranked the Kenyan Shilling as the best-performing currency in the world due to the recovery it had made within a few months.
