After the International Monetary Fund (IMF) disbursed Sh81. 7 billion, Kenya’s foreign exchange reserves increased to $7.537 billion (Sh925. 6 billion), strengthening the nation’s forex buffer amid rising pressure on the local currency.
Kenya had $7. 075 billion in foreign assets and currencies as of December 15—the majority of which are US Dollars—enough to cover the import requirements of the nation for 3.96 months. By year’s end, observers anticipate that the level of foreign exchange reserves will continue to decline before increasing the following year.
The government imports essential goods from the international market, such as drugs and fertilizer, and uses the forex reserves to pay back external loans. Forex reserves have fallen below the desired level ever since July.
