CBK Dollar Reserves Fall By Ksh.49 Billion In A Week

 

By Kepha Muiruri For Citizen Digital

Despite the plunge in FX reserves, the store of foreign currency remains adequate at Ksh.914.4 billion ($8.287 billion) or just over five months of Kenya’s import bill.

The reserves remain above CBK’s prescription of a four-month cover and 4.5 months by the East Africa Community (EAC) convergence criteria.

Last year, the shilling shed 3.6 per cent of the value against the US dollar largely as a factor of a more emboldened green buck.

Compared to other regional and world currencies, losses for the shilling were more in the middle with the Japanese Yen, Ethiopian Birr and Sierra Leone Leone for instance booking losses in double digit across the twelve months.

On the flipside the Zambian Kwacha and Angolan Kwanza and the Ugandan shilling were among the few currencies to eat into the dollar.

As such the CBK maintains the shilling is in line even as it continues to slide into new historical lows.

The local unit was quoted at Ksh.113.57 against the US dollar at the end of trading on Friday.

“There are no concerns about the performance of the shilling or for that matter, the performance of the FX market,” said CBK Governor Dr. Patrick Njoroge on Thursday.