23 July 2014

Kenya: Reuters Selected to Monitor Shilling's Trading

BENCHMARKING of the Kenya shilling in international trade will be automated, Thomsom Reuters announced yesterday after clinching the deal.

The business and professional news services agency said calculating the value of the shilling based on a "state-of-the-art automated analysis" from the manual, quote-driven methodology data "will ensure integrity and transparency of the rates".

It has been handed the contract that extends to Ghana's cedi and Zambia's kwacha by emerging markets trading and investment community group the EMTA Inc. and its African Currency FX Working Group.

"These three global-standard benchmarks are integral to the development of three of Africa's most exciting economies," head of Reuter's Financial and Risk in Africa Sneha Shah said in a statement. "Kenya is the major trading hub for east Africa, Ghana is growing in the west and Zambia is a country to watch in the south with exciting developments in its commodities and derivatives markets."

Reuters, that is now official benchmark provider for 25 currencies in Africa, said it was moving the manual data to its platform to provide " a fully-auditable record of submissions".

It will next month automate data collection from 10 most active contributors to the rate and semi-automate submissions from the rest, the agency said.

This will culminate in the launch of an open consultation on the possible use of transaction data.

The terms of the contract were not disclosed.

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