Kenya’s Foreign Exchange Reserves Hit Record High of $7.85 Billion Amid Shilling Stability
Kenya’s foreign exchange reserves have reached a record high of $7.85 billion as of Thursday, marking a third consecutive week of increases, according to the Central Bank of Kenya (CBK) in its latest financial market update released on Friday.
The reserves rose from $7.34 billion on August 29, providing coverage for 3.8 months of imports, the CBK reported.
As of September 19, the usable reserves stood at $7.85 billion, equivalent to 4.1 months of import cover, meeting the CBK’s statutory requirement to maintain at least four months of coverage.
This growth in reserves coincides with the stabilization of the Kenyan shilling, which has been trading around 129 to the dollar. This stability has reduced the need for the central bank to intervene in the currency market, allowing reserves to build up.
Typically, the CBK intervenes based on fluctuations in the shilling’s value, which can affect reserves positively or negatively.
During the week ending September 19, the shilling averaged 129.2 against major international and regional currencies, maintaining its stability.
