Kenyans Working Abroad Sent Home Ksh21.8 Billion Before December Festivities

[IMAGE/ COURTESY]

Kenyans living and working abroad sent home Ks21.8 billion in November just before the December festivities started.

According to the Central Bank of Kenya (CBK) in its weekly bulletin, remmitances dropped by Ksh5 billion compared to Ksh22.4 billion in October.

North America, Europe and the Rest of the World accounted for 51 percent, 20 percent and 29 percent, respectively, of the total remittances in November.

“The cumulative inflows in the 12-months to November 2019 increased to $2,790 million (Ksh279 billion) compared to $2,658 million (Ksh265.8 billion) in November 2018, reflecting a growth of five per cent,” said CBK.

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The Kenya Shilling strengthened against major international and regional currencies during the week ending December 19, due to inflows amid slowing demand for foreign currency ahead of the festive season. It exchanged at Ksh100.90 per US Dollar on December 19, compared to Ksh101.50 on December 11.

The money market was liquid during the week ending December 19, partly reflecting government payments which more than offset tax remittances. Commercial banks’ excess reserves stood at Ksh18.0 billion in relation to the 5.25 percent cash reserves requirement (CRR).

The average interbank rate decreased to 5.86 percent on December 19 from 6.27 percent on December 11. The
average number of interbank deals per day also declined to 26 from 32 in the previous week. Similarly, the value traded decreased to KSh 19.1 billion from KSh 30.2 billion in the previous week.

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Uncertainty in the major global markets eased during the week ending December 19, driven by the signing of the US-China trade agreement and the outcome of the December 12 UK elections that gave the ruling party clear mandate to pursue Brexit by the January 31 deadline.

The impeachment of the US President had little effect on the market sentiment.
International oil prices continued to increase during the week due to production cuts agreed by OPEC and Non-OPEC countries. The Murban oil price increased to USD 68.52 per barrel on December 19 from USD 66.60 per barrel on December 12.

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