The Bank also enhanced the prudential guidelines of banks on foreign exchange dealings to promote transparency and safeguard the integrity of the financial market. The Bank has and will continue to actively use moral suasion with the banking industry to stem expectations. 8.
Going forward, the intense seasonal demand pressure on the Kenya Shilling exchange rate is slowly dissipating though there is evidence of speculation in the foreign exchange market. In response, the Bank will scale-up OMO to tighten liquidity further to stem expectations. The resilient diaspora remittances and recovery of the global economy will support exchange rate stability.