The Kenyan foreign exchange reserves fell below the 9 billion U.S. dollars mark last week for the first time in over a month-and-a half.
The dollar reserves declined to stand at 8.96 billion dollars, down from 9.06 billion dollars, data from the Central Bank shows Monday.
It was the first time since April 13 that the forex reserves stood at below the 9 billion dollars.
On April 13, the reserves stood at 8.83 billion dollars before rising to an all-time high of 9.5 billion dollars, an equivalent of 6.35 months of import cover.
Last week’s decline was attributed to the apex bank’s move to sell its dollar reserves to save the shilling, which was on the decline to close at 101.60.
The fall of the shilling was linked to increased dollar demand by multinationals and importers during the period, putting pressure on the local currency. Enditem