By Kepha Muiruri For Citizen DigitalThe Central Bank of Kenya (CBK) official foreign currency reserves have rebounded to
grow by Ksh.61.5 billion ($533 million) in the past week.New CBK data now shows the reserves at Ksh.966.2 billion ($8.373 billion) as of Thursday last week from Ksh.904.7 billion ($7.84 billion) previously.
The rise in the FX reserves which are now equivalent to 4.98 months of import cover points to the recent replenishing of the store of foreign currency.
Recent flows from a Ksh.86.6 billion ($750 million) World Bank loan can be attributed to the reserve’s growth.
Last week, the FX reserves fell to their lowest level in eight months since June 2021.
The dip was largely linked to the sale of dollars by the CBK to counter volatility in the local unit which continues to trade at historic lows against the US dollar, primarily from increased demand for the green buck.
About two thirds of the reserves are usually sourced from external debt financing making new disbursements from institutions such as the World Bank crucial in building the shocks buffer.
The official reserves are now well above the prescribed threshold including the East Africa Community (EAC) convergence criteria of 4.5 months and its own prescription of four months.
Last week, the reserves were closer to the first lower limit having stood an equivalent 4.66 months of import cover
$1=Ksh.115.40
By Kepha Muiruri For Citizen Digital
The Central Bank of Kenya (CBK) official foreign currency reserves have rebounded to
grow by Ksh.61.5 billion ($533 million) in the past week.New CBK data now shows the reserves at Ksh.966.2 billion ($8.373 billion) as of Thursday last week from Ksh.904.7 billion ($7.84 billion) previously.
The rise in the FX reserves which are now equivalent to 4.98 months of import cover points to the recent replenishing of the store of foreign currency.
Recent flows from a Ksh.86.6 billion ($750 million) World Bank loan can be attributed to the reserve’s growth.
Last week, the FX reserves fell to their lowest level in eight months since June 2021.
The dip was largely linked to the sale of dollars by the CBK to counter volatility in the local unit which continues to trade at historic lows against the US dollar, primarily from increased demand for the green buck.
About two thirds of the reserves are usually sourced from external debt financing making new disbursements from institutions such as the World Bank crucial in building the shocks buffer.
The official reserves are now well above the prescribed threshold including the East Africa Community (EAC) convergence criteria of 4.5 months and its own prescription of four months.
Last week, the reserves were closer to the first lower limit having stood an equivalent 4.66 months of import cover
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