The shilling has gained some ground against the greenback this week due to rising rates on the overnight borrowing market for banks, which lends support to the shilling.   

"Liquidity is tight so guys are selling dollars for their shilling funding," said a senior currency trader at a commercial bank.  

 The weighted average rate on the overnight interbank market rose to 15.4220 percent on Wednesday from 14.7861 percent in the previous session after liquidity dried up.    

Policymakers raised the benchmark lending rate by three percentage points in a span of four weeks since June after the shilling weakened steeply, raising the prospects of higher inflation.

They are set to meet again on Aug. 5, a month ahead of schedule.    For most of this year the shilling has been under pressure from the global strength of the dollar, slowing export proceeds especially from tourism, and a widening current account deficit.   

Kenya's shilling could benefit due to an anticipated recovery in tourism and the positive sentiments around President Barack Obama's visit, Finance Minister Henry Rotich said on Wednesday.                    –reuters--   

Zambia to issue up to $2 billion 10-year Eurobond - govt

Zambia will issue a 10-yearEurobond of as much as $2 billion on Thursday to fund a widening budget deficit, a presidential spokesman said.

"We expect the Eurobond to be issued today. It will be between $1.5 billion and $2 billion and the maturing date is 10years," Amos Chanda, a spokesman for President Edgar Lungu, told Reuters.

--reuters--