Kenya’s foreign exchange reserves rose for the second consecutive month in April, reaching $7,425 million, according to Central Bank data.
The country’s reserves rose to $7,425 million at the end of last week, compared to $7,343 million previously. CBK said this was equivalent to 4.56 months of import cover as at April 8.
Consequently, the shilling strengthened during the week by 1.3%, to close at Kshs 108.0, from Kshs 109.4 recorded the previous week, at. This was attributed to muted importer dollar demand amid increased inflows from offshore investors into the recently issued infrastructure bond.
However, the shilling is projected to remain susceptible to sentiment around the sustainability of public finances and the inherent risk of debt distress for the sovereign according to NCBA Research.