kenya shilling
kenya shilling

Kenya’s foreign exchange reserves declined by at least 60 million U.S. dollars this week as the Central Bank fought to buttress the shilling amid high demand for dollars ahead of the repeat presidential polls.

Latest data from the apex bank showed Friday that the dollar reserves dipped to 7.31 billion dollars from 7.37 billion dollars last week.

The forex reserves have been on a steady decline in the past weeks as the shilling faces pressure from international currencies, mainly the dollar and the British pound.

In the last five weeks, the reserves have dipped by 234 million to hit the current low of 7.31 billion dollars, an equivalent of 4.7 months of import cover. This is the lowest level since March.

On Monday, the shilling traded at an average of 104 against the greenback down from 103.40 in the previous session.

It was the biggest fall in the recent weeks with the Central Bank said to have sold unknown amount of dollars to buttress the currency.

Apart from speculators seeking to keep their money safe in dollars ahead of the Thursday polls, analysts noted that the shilling had taken the negative trend due to importers’ heightened demand for dollars brought about by the increased political uncertainty. Enditem

Source: Xinhua/NewsGhana.com.gh

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