Excess liquidity in the local market continues to weigh down the shilling, with Google Currency tracker mapping it at 104.78 at 8.30am, a new five- year low.

The new exchange rate has surpassed the lowest level of Sh104.50 recorded on October 2, 2015.

On Tuesday, the shilling closed the day at a mean of Sh103.7, meaning it has shed 96 basis points.

CBK has updated the Shilling at 103.86 against the greenback, 10 basis points down compared to Tuesday.

A money market analyst Jared Muge said that the Shilling is suffering from double effect of excess liquidity in the market as people rush to spend and exchange old Sh1,000 notes ahead of September 30 deadline and high demand for dollar by importers.

‘‘Expect demonetisation effects and importers rush to stock dollars as Saudi oil crisis persist to weigh down the shilling in short term,’’ Muge said.

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