The United States of America remains largest source of remittances into Kenya, accounting for 54 per cent in August 2023.
Remittance inflows in August totaled USD354.3million compared to USD310.5million in August last year, an increase of 14. 1 per cent. The cumulative inflows for the last 12 months to August totaled USD4120 million compared to USD 3992 million in same period last year, an increase of 3.2 per cent.
“The strong remittances inflows continue to support the current account and stability of the exchange rate,” said CBK. During the week ending September 14, Kenya Shilling exchanged at Sh146.66 per USD on September 14, compared to Sh146.04 per USD on September 7
As at September 14, the usable foreign exchange remained at USD7.1 billion (3.8 months import cover). “This meets the statutory requirement to endeavor to maintain at least 4 months of import cover,” CBK said in a weekly bulletin.
According to the CBK Weekly bulletin, liquidity in the money market increased during the week ending September 14. Commercial banks excess reserves stood at Sh11.2 billion in relation to the 4.25 per cent cash reserves requirement. The average interbank rate was 11.71 per cent on September 14 compared to 12.8 per cent on September 7.
“During the week, the average number of interbank deals decreased to 41 from 44 in the previous week, while the average value traded decreased to Sh31.8 billion from Sh32.1 billion in the previous week.
The Treasury Bill auction of September 14 received bids totaling Sh22.1 billion against an advertised amount of Sh24.0 billion, representing a performance of 92.1 per cent. The Treasury bonds auction of September 13, the re-opened 2-year and 10-year fixed rate Treasury bonds received bids totaling Sh34 billion against an advertised amount of Sh35 billion, representing a performance rate of 97.2 per cent.