CBK Weekly Bulletin

August 31, 2012

Highlights

The money market was liquid during the week ending August 29, 2012. The Central Bank sterilized the excess liquidity in the money market by mopping Ksh 24.2 billion through repo securities against maturities of repo and term auction deposits securities held by commercial banks of Ksh 15.5 billion and Ksh 2.4 billion, respectively.

The average interbank rate increased to 8.46 percent during the week ending August 29, 2012 compared with 8.11 percent in the previous week.

The Kenya Shilling depreciated against all major international currencies in the week ending August 30, 2012. Against the US dollar the Kenya Shilling ended the week at an average of Ksh 84.08 per US dollar down from Ksh 84.01 per US dollar in the week ending August 23, 2012.

The usable official foreign exchange reserves held by the Central Bank increased from US dollar 5,103 million (equivalent to 4.12 months of import cover) as at August 23, 2012 to US dollar 5,121 million (equivalent to 4.14 months of import cover) in the week ending August 30, 2012.

The Government offered for sale Treasury bills worth Ksh 15.0 billion during the week ending August 31, 2012. A total of Ksh 13.7 billion was accepted out of Ksh 19.0 billion bids received.

Gross Government domestic debt increased by Ksh 16.7 billion to stand at Ksh 875.5 billion on August 24, 2012, from Ksh 858.8 billion at the end of June 2012. During the week under review, gross government domestic debt declined by Ksh 4.1 billion, largely on account of Treasury bonds.

Stock market performance was robust in the week ending August 30, 2012 as reflected by gains in most of the market indicators. All activities in equities and bonds were up except for the Equity Turnover, which edged down 5.4 percent. The NSE 20 Share Index was up 57.41 points, while the Nairobi All Share Index (NASI) was up 0.86 points. The FTSE NSE 15 Index and FTSE NSE 25 Index were up 1.75 and 1.58 points respectively. Supply of shares increased 48.0 percent, while Market Capitalization was up 1.0 percent.

Similarly, the bonds market activity edged up recording a 71.1 percent increase in turnover.

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