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World Bank: Kenyan Shilling Ranked as Best-Performing Currency in Sub-Saharan Africa

World Bank: Kenyan Shilling Ranked as Best-Performing Currency in Sub-Saharan Africa 

Kenyan Shilling Notes

The Kenyan shilling is currently the best-performing currency in Sub-Saharan Africa, according to the most recent World Bank evaluations.

According to the report, the Central Bank of Kenya’s (CBK) increase in the base lending rate was closely correlated with the shilling’s increased value.

The World Bank research also projected that Kenya’s economy will rise by 5% in 2024. 

The report noted that in the longer term, growth will be supported by higher investment dependent on restored access to international capital markets, which will drive investor confidence and capital inflows.

“The Kenyan shilling is the best-performing currency in the subcontinent, as it recorded an appreciation of 16% so far this year. After strengthening by 14% by mid-February, the Zambian kwacha has lost some ground and recorded a year-to-date appreciation of 2.4% as of mid-March.

In both cases, the monetary authority hiked interest rates to defend their currencies. In Kenya, securing funds to repay its Eurobond falling due in June 2024 restored confidence and increased the demand for local currency,” the World Bank stated.

Kenya’s stock market has recovered from its lowest point to its highest point following the April meeting of the Monetary Policy Committee (MPC). Experts claim that because the high base lending rate translates into higher interest, more investors are currently choosing assets denominated in Kenyan shillings.

Inflation is still high but is decreasing in the majority of Sub-Saharan African nations, according to a World Bank analysis. Inflation is expected to decline in almost 80% of African nations compared to 2023, although in 32 out of 37, it remains higher than pre-pandemic levels.

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