The Kenyan Shilling continued to post impressive performance against the Dollar on Wednesday.
Experts indicated that the strength was attributed to a spike in dollar inflows, majorly from diaspora remittances.
A report by Reuters also indicated that the spike in dollars within the Kenyan economy emanated from non-governmental organisations meeting importer demand.
As a result, banks exchanged the Shilling at the rate of between Ksh128.50 per dollar and Ksh129.50 per dollar.
With the exchange rate, Shilling maintained its resilience against the greenback since the beginning of August when it exchanged at Ksh129.15 per US dollar.
That was a notable improvement from the rate of Ksh132.22 against the dollar in the previous week.
An earlier report by the Central Bank of Kenya had shown that several businesses had lowered their reliance on dollar and other foreign currency loans switching back to the stronger shilling.
The value of the loans dropped by 13.3 per cent in June and 1.2 per cent in April.
"The sharp decline (in the foreign currency loans) reflects the appreciation of the exchange rate," the CBK governor announced at the MPC.
Last week, the Central Bank of Kenya revealed that in the first quarter of this year, the country recorded a significant surge in remittance inflows from the Kenyan diaspora.
In its Quarterly Economic Review Q1 2024 report, the remittance hit a high of Ksh156 billion.
In the report, the US was the largest source of remittances, followed by the United Kingdom and other European countries.
The diaspora remittances proved a crucial lifeline to household incomes and providing a substantial boost to the national economy.
