NAIROBI (Xinhua) --
Kenya’s foreign exchange reserves declined by
52 million U.S. dollars last week as the central bank gave
support to a declining shilling.
retreated to a six month low of 104.10 last week, with the
regulator reportedly using its dollars to buttress it.
The reserves, as
latest data from the central bank showed on Monday, fell to
7.87 billion dollars, an equivalent of 4.63 months of import.
The decline was a
continuation from the previous weeks, with the dollar reserves
having fallen from a peak of 8.26 billion dollars, an
equivalent of 4.86 months of import cover where they stood at
the end of May.
Last week, the
Kenya shilling depreciated by 0.1 percent against the dollar
to close at 103.9 from 103.8 the previous week, mainly driven
by increased dollar demand from food and oil importers.
reversed the downward trend on Friday, gaining some ground
against the dollar but was weaker on Monday trading.
The central bank
Monday quoted the shilling at 103.90, which was a marginal
drop from Friday’s 103.88.
On the other hand,
commercial banks quoted the local unit at between 103.90 and
104.05, with traders noting demand for dollars was still high
though inflows were rising.