Official foreign exchange reserves held by the Central Bank of Kenya (CBK) declined by about Sh26 billion ($258 million) or about three per cent in January, new data shows.
The total forex reserves stood at $8.50 billion as at January 30 compared to $8.76 billion on January 2. The reserves represented 5.20 months of import cover similar to the level in the past two weeks.
The decline within the month in forex happened even as the value of the Kenya shilling in US dollar terms appreciated by 0.75 per cent during the same period.
But the CBK however maintained that the reserves were adequate in legal terms and also met the East African Community convergence criteria. “The CBK usable foreign exchange reserves remained adequate at USD 8,500 million (5.20) months of import cover) as at January 30. This meets the CBK’s statutory requirement to endeavour to maintain at least four months of import cover, and the EAC region’s convergence criteria of 4.5 months of import cover,” the CBK said.