Kenya’s Dollar Reserves Drop Besides Strengthening Shilling

• The Central Bank of Kenya (CBK) re-opened two 20-year bonds namely, FXD1/2012/20 ( 17.9 years to maturity) and FXD1/2019/20 (11.4 years to maturity) to raise KES.30Bn.

Kenya’s foreign exchange reserves declined in the week ending Dec 24 besides a strengthening shilling against the U.S. dollar.

The dollar reserves, official data from the Central Bank of Kenya (CBK) showed Thursday, stand at 7.8 billion dollars or 4.78 months of import cover.

The dollar reserves have been on a decline in the past weeks as the shilling faces pressure from international currencies.

The CBK maintains that the current forex reserve meets its statutory requirement to endeavor to maintain at least 4 months of import cover, and the EAC region’s convergence criteria of 4.5 months of import.