Kenya’s forex reserves hit historic $10.59 billion, buoyed by remittances and strong shilling
The reserves have been on an upward trend since March, when they surpassed the 10-billion-US-dollar mark.
Kenya's foreign exchange reserves rose by 122 million US dollars this week to reach a historic high of nearly 10.59 billion dollars, the Central Bank of Kenya said in its weekly financial markets update released Thursday evening.
The reserves have been on an upward trend since March, when they surpassed the 10-billion-US-dollar mark.
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The increase has been attributed to robust diaspora remittances, a stable Kenyan shilling, and higher export earnings.
The current reserves provide import cover for 4.7 months -- well above the East African Community's recommended threshold of four months, the Central Bank of Kenya said.
The Kenyan shilling has maintained relative stability against the U.S. dollar in recent months, allowing the central bank to accumulate reserves without frequent intervention in the forex market. This week, the shilling traded at 129.22 to the dollar, slightly firmer than the previous week's 129.26.
President William Ruto said Tuesday that the rise in forex reserves has not come easily for Kenya, which grappled with a foreign exchange crunch in 2023.
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