Central Bank of Kenya weekly bulletin to the week ending May 21 shows that diaspora remittances fell by 9 per cent in April to Ksh22 billion (USD208.2 MILLION) from Ksh24.2 billion (USD228.9 MILLION) in March.
CBK notes that the remittance flow from the US and Canada (accounting for 58% of April Remittances) remains unchanged from March. However, remittances from the UK, Germany, SouthAfrica, EAC region, and the United Arab Emirates and Saudi Arabia declined with CBK blaming COVID19.
In addition, the bulletin shows that the usable forex reserves remain adequate at Ksh899.8 billion (USD 8,489 million (5.11 months of import)). Kenya’s Forex reserves got a boost earlier this month following receipt of Ksh78 billion ($739 million) from the IMF drawn under the Rapid Credit Facility (RCF). The funds are meant to help Kenya meet its balance of payments needs.
In the week, the money markets remained active with Commercial banks excess reserves standing at ksh38.9 billion in relation to the 4.25 per cent cash reserves requirement (CRR). The average interbank rate remained stable at 4.19 per cent on May 21 compared to 4.22 per cent on May 14.
T-Bills and Bonds
T-bills auction on Thursday, May 21 raised Ksh26.45 billion against an advertised amount of Ksh24 billion representing a 10.2% over-subscription. However, investors shunned the re-issued Ksh30 billion 5-year bond which raised a paltry Ksh.8.9 billion.
Kenya shilling had a slight depreciation in the week as it exchanged at KSh 106.89 per US dollar on May 21 compared to KSh 106.59 per US dollar on May 14.