Kenya’s foreign exchange reserves have hit an all-time peak of $7.85 billion as of Thursday, notching up gains for the third week in a row, according to the Central Bank of Kenya (CBK) in its latest financial market update unveiled on Friday evening.
Folks gather at the International Floriculture Trade Expo in Nairobi, Kenya, on June 5, 2024. (Photo by John Okoyo/Xinhua)
Kenya’s foreign exchange reserves have hit an all-time peak of $7.85 billion as of Thursday, notching up gains for the third week in a row, according to the Central Bank of Kenya (CBK) in its latest financial market update unveiled on Friday evening.
The reserves climbed from $7.34 billion on August 29, covering 3.8 months of imports, the CBK revealed.
“Usable foreign exchange reserves have remained solid at $7.85 billion (4.1 months of import cover) as of September 19. This aligns with the CBK’s mandate to maintain at least 4 months of import cover,” the central bank stated.
These reserves have been on an upward trajectory as the Kenyan shilling holds steady at approximately 129 units to the dollar. This stability has eased the need for the central bank to intervene in the forex market, fostering reserve accumulation.
Typically, the bank steps in to manage the shilling’s value fluctuations, which can swing the reserves up or down. For the week ending September 19, the shilling averaged 129.2 units to the dollar, keeping its ground against major global and regional currencies.
