CBK to inject Ksh5B into market

The Central Bank of Kenya (CBK)  said on Monday it planned to inject 5 billion shillings ($48.92 million) into the money market.

The bank uses reverse repurchase agreements (reverse repos) to pump in cash when its analysis shows some banks could be struggling to get funding from their counterparts.

Last week CBK announced that it would  mop up Ksh18 billion ($176.38 million) in excess liquidity from the money markets.

The bank uses repurchase agreements and term auction deposits to absorb the excess liquidity, making it expensive to hold onto dollars, which in turn lends support to the shilling .