CBK forex cash falls by Sh11.8bn after peaking

Tuesday, January 20, 2015 — updated on December 25, 2020 - 1 min read

Central Bank of Kenya foreign exchange reserves have gone down by Sh11.8 billion in 2015. PHOTO | FILE

Central Bank of Kenya (CBK) foreign exchange reserves have gone down by Sh11.8 billion in 2015, probably reversing an upward trend.

On January 14, the reserves stood at Sh675.68 billion ($7.425 billion) against Sh663.85 billion ($7.295 billion) for end of last year.

The available forex catered for 4.71 months of import cover against the previous 4.90 months.

READ: Forex reserves hit record Sh676bn on foreign bond reopening

A commercial bank source said the CBK had been present in the market selling dollars in the first week of the year but was not present last week and early this week. However, the source added payment for external loans could also explain the reduction in the reserves.

“Certainly, we saw the CBK in the market in the first week of the year, but it has now kept off. Even last week and today, the CBK has not come in,” said the source adding continued weakening of the local unit might see the regulator attempt to impose some control.