The amount of foreign exchange reserves in Kenya has been on a steady decline since the pandemic hit Kenya in March. The reserves have dropped by 10% since the start of the year to $ 7.849 billion (equivalent to 4.82 months of import cover) in the week that ended on 11th December, from $ 8.758 billion (equivalent to 5.4 months of import cover) in the first week of 2020.
The level of reserves in the past week fell by $105 million from $ 7.954 billion the previous week to $7.849 billion. Kenya’s Central Bank has been using the reserves to support the Kenya shilling which is facing intense downward pressure due to low foreign exchange income from tourism and exports.
The Kenya Shilling maintained its decline, weakening marginally against major international and regional currencies in the week that ended on December 10. The shilling exchanged at KSh 111.44 per US dollar on 10th December, a decline from KSh 110.67 per US dollar on December 3.
The average interbank rate increased to 4.12% from 3.86% the previous week while the value of interbank transactions jumped to KSh10.6 billion from KSh 6 billion in the week that ended on 3rd December.
Commercial banks’ excess reserves stood at KSh 24.6 billion, compared to KSh 8.5 billion a week earlier.
Kenya’s Forex Reserves Plunge to $8.2 Billion
