Kenya’s foreign exchange reserves reached a record high of 7.85 billion US dollars as of Thursday, marking an increase for the third consecutive week, according to the Central Bank of Kenya (CBK) in its weekly financial market update released on Friday night.
The CBK reported that reserves rose from 7.34 billion USD on August 29, covering about 3.8 months’ worth of imports. “As of September 19, usable foreign exchange reserves stood at 7.85 billion USD, providing 4.1 months of import cover. This meets the CBK’s statutory requirement to maintain at least 4 months of import cover,” the central bank stated.
The reserves have increased further as the Kenyan shilling stabilized at around 129 units per US dollar. This currency stability has reduced the need for the central bank to intervene in the currency market, allowing reserves to accumulate.
The CBK typically intervenes when the value of the shilling fluctuates significantly, which can positively or negatively impact reserves. During the week ending September 19, the shilling remained stable against major international and regional currencies, averaging 129.2 units to the dollar.
