Kenyan shilling stable as gov't concludes demonetization
INTERNATIONAL –The Kenyan shilling remained stable against international currencies as the east African nation concluded the demonetization of its currency on Monday.
The Central Bank of Kenya (CBK) quoted the shilling against the US dollar at 103.88, nearly the same level it closed on Friday last week.
Against the British Pound, the shilling traded at 128.00 while it exchanged against the Euro 113.53 on Monday, according to the apex bank.
CBK on June 1 announced the introduction of new generation notes in an effort to track illicit financial flows.
The Central Bank was expected to collect 217 billion shillings (about 2.13 billion dollars) in old notes at the end of the exercise.
The exercise was also expected to enhance the financial inclusion of the informal sector, in addition to helping the country transition to a more cash-less economy.
While the bank introduced new 50, 100, 200, 500 and 1,000 notes, it said the latter would cease to be legal tender on Oct. 1.
The shilling in the last months had weakened against the dollar to trade at over 104, with analysts partly blaming the decline to the demonization that saw exits from the currency to the stable greenback.