South Africa’s Rand led slides among the currencies of commodity-exporting nations.
The Rand suffered its biggest one-day drop against the dollar in nearly a decade on Friday as the Britain vote jolted world markets. It dropped by about 8.78% to the dollar, the steepest one-day fall since the 2008 financial crisis.
Central Bank of Kenya assured investors that it is ready to intervene in the money and foreign exchange markets to ensure their smooth operation. The central bank has been ramping up its firepower raising its reserves to more than 5 months of import cover. However analysts say the Kenyan shilling is over valued, a position which makes it vulnerable to shocks. UK is Kenya’s third largest export market.
Other major central banks have also announced their readiness to intervene to minimize disruption in their markets.
