CBK assures there is adequate FOREX  reserves to bolster the Shilling

By Amina Faki

The Kenya shilling continued to depreciate against both the regional and global currencies besides holding firm against the US dollar on Tuesday.

The shilling closed at 1.39 percent, 8.28 percent, and 11.27 percent against the dollar, the pound and the euro respectively compared to Monday’s trading on which it closed at 1.3 percent, 6.3 percent and 10.56 percent against the dollar, the pound and the euro respectively.

On Tuesday, the Central Bank said they have adequate reserves and the pressure on the shilling was due to bets on the outcome of the forthcoming August election.

“We have a flexible exchange rate regime. What we are only concerned about is volatility and that is where we can intervene. Our job is stability of the Kenyan shilling,” said Governor Patrick Njoroge.

The CBK Monetary policy Committee that met on Monday said the foreign exchange reserves stand currently at USD 7,802 million falling from recent record levels of USD 8,276.5 million at end of May 2017. “These reserves continue to provide a buffer against short-term shocks, together with the precautionary arrangements with the International monetary Fund equivalent to USD 1.5 billion.”

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