Regulatory Alerts2016-10-25 | 1961266065Banking Circular No 4 of 2009 - Revision of CBR and Tenors for repo:reverse repo, late repo and term auction deposit facility
The Central Bank of Kenya has revised the Central Bank rate from 8.25% to 8.0%, effective immediately. They have also reviewed the tenors of their liquidity management instruments, with the tenors for Repurchase/Reverse Repurchase Agreements, late Repo, and Term Auction facility being revised to a single tenor of 5 days, effective from May 25, 2009. This change in tenor aims to streamline the bank's liquidity management processes.
KENYA Haile Selassie P.O. Box 60000 Nairobi Telephone 226431 Telex 2 May 22, 2009 BANKING CIRCULAR NO. 4 OF 2009 TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS CENTRAL BANK RATE (CBR) 1.
REVISION OF: TENORS FOR REPO/REVERSE REPO, LATE 2.
AND TERM AUCTION DEPOSIT REPO FACILITY The Monetary Policy Committee met on 21st May 2009. Amongst other decisions, the committee agreed to revise the Central Bank rate from 8.25% to 8.0%. This change takes effect immediately.
In addition, the Central Bank has also reviewed the tenors of its liquidity management instruments. In this regard, with effect from 25th May 2009, the tenors for Repurchase/Reverse Repurchase Agreements (Repo/Reverse Repo), the late Repo and the Term Auction facility will be revised to a single tenor of 5 days only. The late repo will continue to be priced at 100 basis points below the latest available average rate for the early repo.
D A. NYAOMA DIRECTOR, BANKING SERVICES DEPARTMENT