Thursday Code – The Central Bank has issued the Kenya Forex Exchange Code (the FX Code) to commercial banks as they look to bring activity back into the interbank Forex market. The FX Code sets out standards for commercial banks while both strengthening and promoting the wholesale FX market in Kenya. The President has spoken publicly on the status of the FX market, showing the importance the current regime has placed on this segment of the economy. Attached is the press release detailing this move by the Central Bank.
On a house keeping matter, the O/N interbank rate shown yesterday was erroneous. The correct rate was 7.0399% and not 6.0399% as indicated in yesterday’s note.
Below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
Below are the two-way quotes for the benchmark tenors, two-way quotes for the infrastructure bonds and the key rates:
Attached are the bond positions available today, the Kenya FX Code and the April 2023 Bond Auction prospectus.