Kenya’s forex reserves hit 3-year high

NAIROBI, Nov. 9 (Xinhua) — Kenya’s foreign exchange reserves rose by a record 737 million U.S. dollars to reach a three-year high of 9.32 billion dollars as of Thursday, the Central Bank of Kenya (CBK) said in its weekly financial markets update released Friday evening.
The reserves increased from 8.58 billion dollars on Oct. 31, equating to 4.4 months of import cover, the apex bank said in Kenya’s capital Nairobi. The last time reserves exceeded 9 billion dollars was in September 2021.
The forex reserves have been on an upward trajectory since September, but this week’s surge comes after the International Monetary Fund approved the disbursement of a 606.1-million-dollar loan to the East African nation on Oct. 31.
“The usable foreign exchange reserves remained adequate at 9.32 billion U.S. dollars (4.8 months of import cover). This meets the CBK’s statutory requirement to endeavor to maintain at least four months of import cover,” the central bank said, adding that the reserve increase enhances the central bank’s ability to shield the shilling from potential market volatility.
The bank noted that the Kenyan shilling remained stable against major currencies this week, though it slid slightly against the dollar, exchanging at 129.21, down from 129.20 the previous week. ■