Our monthly review of African markets tracks the major local currencies and the policy decisions steering them. The headline this month is the Kenyan shilling’s stabilisation as inflation cools for a third consecutive month.
Kenya: the shilling steadies
USD/KES has settled after a volatile stretch, helped by easing inflation and improved FX liquidity. The Central Bank of Kenya has room to keep policy on hold, and we expect a cautious, data-dependent stance. For importers and traders, the calmer tone is a welcome change from last year’s swings.
Regional snapshot
Elsewhere on the continent, currency performance remains a story of differentiated fundamentals: economies with credible disinflation and external support are outperforming, while those facing fiscal strain stay under pressure. Commodity exporters are tracking the firm gold price and softer oil.
The central-bank calendar
Several regional central banks meet this month. With global rate cuts approaching, local policymakers have more flexibility, but most will want to see sustained disinflation before easing. We favour patience over pre-positioning ahead of these decisions.
Market commentary from the EmpireFX Research Desk. For general information and education only — not investment advice. Trading forex and CFDs carries a high risk of loss. EmpireFX is licensed and regulated by the Capital Markets Authority (Kenya).