Why you should care about forex reserves

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Former Central Bank of Kenya Governor Patrick Njoroge on December 1, 2022. PHOTO | LUCY WANJIRU | NMG

The erosion of Kenya’s official forex reserves below the statutory threshold of an equivalent four months of import cover has heightened concerns over the country’s weakening buffer in the event of external shocks.

The depletion has left the Kenyan shilling exposed to further depreciation after reserves last week fell to their lowest level in nearly a decade to stand at Sh870 billion ($6.939 billion).

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Note: The results are not exact but very close to the actual.