Kenya Central Bank offers banks 10bn shillings
Kenya’s Central
Bank offered banks 10 billion shillings in sale and repurchase
agreement on Monday after a liquidity squeeze caused by end-year
payment of taxes to the government.
Banks took up 8.36
billion shillings of the cash offered at an average rate of 1.46
percent.Central Bank and traders said the government usually increases
liqidity in the banking system at this time of the year as the tax
payments fall due during this time.
The repo, which has
a tenor of eight days, is the second cash injection by the central bank
since late November when it offered 3.26 billion shillings. It has
offered 281.5 billion shillings in 2010, the bank said.
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