NAIROBI (Xinhua) --
exchange reserves have declined to eight months low as retail
importers’ demand for U.S. dollars surges.
dollar reserves, according to data from Central Bank of Kenya
Monday, fell last week to a new low of 7.14 billion U.S. dollars
or an equivalent of 4.7 months of import cover.
was a decline of 71 million dollars, the biggest in recent
times, highlighting the huge demand for dollars in the East
African nation. The previous week, the forex reserves declined
by 60 million dollars.
demand for dollars, which has put pressure on the shilling, has
been attributed to the successful conclusion of Oct. 26 repeat
Conclusion of the polls has seen importers, including
manufacturers and oil traders, demand more U.S. currency to
bring in merchandise.
the traders, according to analysts at Cytonn, a Nairobi-based
investment firm, had initially adopted a wait-and-see attitude
due to political uncertainty over elections.
was thrown into political uncertainty following the annulment of
the Aug. 8 presidential election by the Supreme Court, which
called for fresh polls in 60 days. Fresh elections were called
on Oct. 26 but the opposition boycotted them.
time Kenya’s dollar reserves hit such low level was in mid March
when they stood at 7 billion dollars or 4.6 months of import
shilling firms against the dollar on rising inflows
NAIROBI (Xinhua) --
The Kenya shilling began the week stronger on
Monday, going up against the U.S. dollar as inflows from various
sectors, including agriculture, rose.
shilling traded at an average of 103.67 to the dollar, up from
103.70 in the previous session on Friday.
Central Bank of Kenya placed the local unit at 103.66 against
the greenback, up from last Friday’s 103.74.
other hand, commercial banks in the east African nation placed
the currency at between 103.60 and 103.80 against the dollar.
at financial institutions attributed the firming of the shilling
to inflows from various sectors which helped to offset
increasing demand of dollars from retail importers, in
particular manufacturers and oil traders.
According to the apex bank, the Kenya shilling exchange rate
remains relatively stable against the dollar and the British
Pound, which it exchanged at 135.74 on Monday.
attributed the firming against the pound to the Bank of
England’s decision last week to raise interest rate for the
first time in over a decade.
has foreign exchange reserves that stand at 7.1 billion dollars,
an equivalent to 4.7 months of import cover, which is sufficient
to support the shilling.