As a result of this, we have retained the CBR at 11 percent and we will watch carefully the next few weeks to see where things move. Developments in the foreign exchange market The shilling has been depreciating against the US dollar over the last few weeks. Since February 2014, the shilling has depreciated by about 14 percent against the US dollar.
This followed sustained appreciation during 2013 and the first months of 2014. The depreciation of the exchange rate since February 2014 reflects several factors. First, there has been a correction of the exchange rate which had become over valued in 2013. Secondly there has been strong demand for foreign exchange from the real sectors of the economy especially manufacturing and oil sectors.