NAIROBI (Xinhua) --
Kenya’s foreign exchange reserves have dropped slightly
last week as the shilling faced pressure following
increased demand of U.S. dollars by oil importers.
fell from 7.02 billion dollars, an equivalent of 4.64
months of import cover, to 6.97 billion dollars or 4.61
months of import cover, data from Central Bank of Kenya
The drop of
about 54 million dollars indicated that the apex bank
last week had to buttress the shilling from falling
further by selling dollars.
the Central Bank sells dollars to prop up the local
currency from falling to levels that would destabilize
the money market.
bank quoted the shilling at 103.1 against the dollar and
a 127.7 against the British Pound, this was a drop of
0.08 percent and 0.37 percent respectively.
according to analysts, the currency was stable during
the Tuesday trading following an almost equal demand and
supply of dollar inflows.
shilling depreciated by 0.4 percent against the dollar
last week to close the week at 103 compared to 102.6
recorded the previous week on account of heightened
dollar demand from oil importers.
The level of
forex reserves had stabilized for weeks at 7 billion
dollars, an indication of the confidence of the Central
Bank had with the level of the shilling.
monetary policy committee is meeting next week and is
likely to take measures to protect the shilling,