Treasury and the Central Bank of Kenya CBK are split over rival exchange for bonds.
Reliable reports indicate that the Treasury has broken ranks with the Central Bank of Kenya by supporting a new exchange for trading government securities that will rival the Nairobi Securities Exchange (NSE).
In the financial tiff, the Treasury is reported to back the new privately-owned platform – the East African Bond Exchange (EABX)- which allows investors to trade Treasury bonds outside the Nairobi bourse. This places the Treasury and the Central Bank of Kenya (CBK) at odds since the banking regulator has raised concerns over the second bond trading platform.
The banking regulator, according to Business Daily, fears that the dual platform will distort the market through creation of two prices for the same bond.
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