NAIROBI, Dec. 22 (Xinhua) -- Kenya's interbank rate declined by 4 percent on a weekly basis to stand at 7 percent this week, data from the Central Bank of Kenya showed Saturday.
The rate stood at a three-year-high of 11 percent in the previous week.
The apex bank attributes the 4 percent decline to high liquidity in the money market as commercial banks piled up their cash reserves.
"Liquidity in the money market improved during the week partly due to the commencement of a new cash reserve requirement (CRR) cycle on Dec. 15. Commercial banks' excess reserves stood at 33.2 billion shillings (325 million U.S. dollars) in relation to the 5.25 percent CRR," said the bank.
The average interbank volumes traded this week decreased to 135 million dollars compared to 150 million dollars last week.
