Forex News Blog in Kenya

Currency exchange rates are one of the main topics covered in Forex News Blog in Kenya. We also discuss the Central bank of Kenya’s foreign exchange reserves and the Economic outlook for 2016. We also discuss the presence of an online foreign exchange broker in Kenya, Tadenex. We conclude with some useful advice for investors. The forex market in Kenya is a very risky investment. However, the right approach will help you avoid the most common pitfalls.

Currency exchange rates in Kenya

The Central Bank of Kenya (CBK) publishes daily currency exchange rates on its website. The CBK monitors the forex market in Kenya and limits its intervention to maintain stable currency exchange rates. However, the information provided by these rates is merely indicative and should not be relied upon for trading purposes.

Unlike newer remittance companies, banks tend to charge higher fees and offer inferior USD to KES exchange rates. It’s therefore important to consider the total cost of sending money to Kenya before deciding on a particular method. This includes exchange rates and transaction fees. Both of these costs will impact the amount of money that you can send to your recipient.

Central bank of Kenya’s foreign exchange reserves

The Central bank of Kenya is a monetary policy-making body responsible for managing the nation’s foreign exchange reserves and government domestic debt. It implements monetary policy through the use of various instruments including open market operations. Its foreign exchange reserves are a national asset held by the government to meet its external obligations and debt-servicing obligations. The primary objective of the management of the foreign exchange reserves is to protect the value of the national currency.

This week, Kenya’s foreign exchange reserves decreased by about 44 billion Kenyan shillings, or about 233 million U.S. dollars. The decline in the country’s forex reserves came after the central bank used part of its reserves to support the shilling against the U.S. dollar, which weakened the value of Kenya’s foreign currency.

Economic outlook for 2016

The economic outlook for Kenya has improved since the country’s president took office in 2017. The country has improved its public finances and reduced its debt levels, but challenges still remain. The government has implemented a climate-conscious policy and is focused on diversifying its economy. However, the country ranks low on several global indices that measure competitiveness and innovation.

Kenya has recently raised $2.1 billion in a dual-tranche eurobond. The issue comprises two parts: $900 million in seven-year bonds priced at seven percent and $1.2 billion in 12-year bonds priced at eight percent. Both of the portions were priced below initial market estimates of 8.5 percent and 7.5 percent, respectively. Proceeds will be used to refinance a $750 million eurobond maturing in June.

Online foreign exchange broker Tadenex’s presence in Kenya

Tadenex and Tradesense have recently received licenses from the Capital Markets Authority (CMA) to offer online forex trading in Kenya. The CMA has made it clear that there is a high demand for foreign currency trading in Kenya. As a result, the CMA has issued warnings about using unlicensed entities to transact in foreign currencies.

This new regulation has been welcomed in Kenya. It will enable Kenyan retail traders to trade in a regulated environment. Moreover, Kenya’s financial regulator has already proposed changes to the Capital Markets Act to encourage the growth of the forex trading industry in the country. In addition, the new regulations will require foreign exchange brokers to acquire a local license.