Kenyans Will Have To Go Through Banks For Forex In Excess Of $100,000. It’s A New Directive

A record downturn of Kenya Shillings against the dollar went on into the last part of the year, worsening the country’s debt service and import costs.

All things considered, Kenyans trying to purchase foreign trade (forex) in overabundance of US$100,000 each day should now rigorously go through business banks, following another order from the National Bank of Kenya (CBK).

According to the CBK’s official rate, the Kenyan shilling closed Wednesday’s trading at 146.49 units to the US dollar. The move comes at a time when the shilling is under tremendous pressure against major currencies.

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Fairly recently, the CBK has observed increased participation of money transfer operators in the wholesale foreign exchange market without being required to comply with various guidelines, standards and codes of conduct.

To make a fair and precise market, the CBK has limited the sale of foreign exchange by money remittances suppliers to customers to a limit of USD 100,000 for each customer every day.

“Money transfer operators will only be allowed to sell foreign exchange in excess of USD 100,000 or its equivalent to commercial banks,” reads Banking Circular dated September 13, 2023 and signed by CBK’s Director of Banking Supervision, Gerald Nyaoma.

The letter is addressed to the CEO’s of the country’s 20 money transfer organizations.

In March 2023, Kenya went into a concurrence with the Gulf to source oil based products on credit, a move pointed toward tending to challenges in the foreign trade market.

“From time to time, the CBK has issued standards, policies and guidelines for adoption by participants in the foreign exchange market with a view to promoting an orderly and vibrant foreign exchange market.

“Consequently, market participants are required to comply with the guidelines, including quotations,” the CBK said in its letter.

Credit: Nation Media Group