NAIROBI, July 21 (Xinhua) -- A balanced liquidity in the Kenyan money market saw trading among financial institutions go flat this week.
The volumes traded averaged 149 million U.S. dollars compared with 144 million dollars in the previous week.
"The interbank money market activity during the week remained at the levels witnessed the previous week, partly reflecting the balanced liquidity in the market," said the Central Bank of Kenya on Saturday.
However, the average number of deals increased from 21 in the week to 24. The leveled liquidity saw the interbank rate decline during the week as less banks borrowed.
A tight liquidity always pushes banks to borrow more from each other, especially the small ones, pushing up the interbank rate.
"The weighted average interbank rate decreased to 3.18 percent from 4.66 percent in the previous week," said the Central Bank.
