Kenya’s foreign exchange reserves declined $7.37 ( KES 884 billion) from $7.6 billion (KES912 billion) for the week ended September 2, the latest data released by the Central Bank showed.
“The usable foreign exchange reserves remained adequate at USD 7,375 million (4.20 months of import cover) as at September 1,” the CBK Said in its Weekly Bulletin.
“This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.”
During the week, the Kenyan shilling continued to depreciate against the US dollar to close the week at Kshs 120.1, a 0.2% depreciation from Kshs 119.9 recorded the previous week.
This was partly due to increased dollar demand from the oil and energy sectors against a slower supply of hard currency.
On a year-to-date basis, the shilling has depreciated by 6.2% against the dollar, higher than the 3.6% depreciation recorded in 2021.
In August, the forex reserves declined by $365 million to $7.38 billion on debt repayments.
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