Kenya’s forex reserves hit record high of 14 bln USD

NAIROBI – Kenya’s foreign exchange reserves rose by 874 million U.S. dollars this week to reach a record high of about 14 billion dollars, the Central Bank of Kenya said in its weekly financial markets update released on Friday. The reserves increased from 13.173 billion dollars the previous week, driven by the receipt of 750 million dollars in World Bank funding to support stronger accountability and social protection, according to the central bank. The bank said the country’s foreign exchange reserves now provide six months of import cover, up from 5.6 months a week earlier. It added that the reserves meet the statutory requirement to maintain at least four months of import cover. Since the beginning of the year, Kenya has consistently maintained foreign exchange reserves above 12 billion dollars, helping support the Kenyan shilling against major global currencies. According to the central bank, the latest increase in foreign exchange reserves is expected to provide further support for the shilling in the coming weeks. – Xinhua