Forex Reserves Fall Amid Debt Repayment Pressure

0 34

Kenya’s official foreign reserves have fallen to Sh941.5 billion ($7.953 billion) in the week ended July 14; with the import cover dropping to the lowest level in a year at 4.59 months.

The reserves have declined by Sh102.3 billion from the week ended December 30; when they were recorded at Sh1.04 trillion ($8.817 billion) representing 5.39 months’ import cover.

Analysts have attributed the drop to external debt repayments; which remain the biggest source of outflows, including Eurobond coupon repayment made in June. External debt service in May and June were Sh29.6 billion; and Sh31.1 billion respectively according to World Bank Debtor Reporting System.

The Central Bank of Kenya (CBK) said in a bulletin that the reserves were adequate and above its threshold of at least four months of import cover; and the EAC region’s convergence criteria of 4.5 months.

-Businessdaily

https://www.businessdailyafrica.com/bd/markets/currencies/forex-reserves-fall-amid-debt-repayment-pressure-3885432

Leave A Reply

Your email address will not be published.

%d bloggers like this: