Foreign exchange reserves rise by 7.7 billion shillings on export earnings

Currencies

Foreign exchange reserves rise by 7.7 billion shillings on export earnings


Headquarters of the Central Bank of Kenya. FILE PHOTO | NMG

Foreign exchange reserves held at the Central Bank of Kenya (CBK) increased by a marginal Sh7.7 billion ($ 71 million) in the week to April 22, mostly on export earnings, according to de new data.

The CBK’s weekly bulletin shows that reserves stood at $ 7.727 billion (837.76 billion), up from $ 7.656 billion (817.7 billion shillings) on April 15.

“Usable foreign exchange reserves remained adequate at $ 7,727 million (4.75 months of import coverage) as of April 22. This meets the statutory requirement of CBK to strive to maintain at least four months of import coverage, convergence criteria of 4.5 months of import coverage, ”CBK said in the weekly bulletin.

Growth in foreign exchange reserves slowed, however, from inflows the week to April 15, which saw an increase of 24.67 billion shillings ($ 231 million) from the previous week, following the disbursement of the first tranche of an International Monetary Fund. government loan facility.

According to Churchill Ogutu, head of research at Genghis Capital, this week’s rise remains insignificant but could be partly attributed to multilateral lending and export earnings.

“The amount is very marginal and we doubt that there were any significant inflows in terms of debt inflows. The government has also been discreet about these financial flows, ”he said.

The country receives foreign currency inflows from foreign hard currency loans, export earnings and tourism, and diaspora remittances.


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