Kenya’s foreign exchange reserves shrank by 12.5 billion shillings (about US$103 million) this week to their lowest level in five years, as the shilling fell to an all-time low against the dollar, the Central Bank of Kenya announced in its weekly financial market update.
Reserves fell from $7.42 billion last week to $7.32 billion, after the central bank reportedly sold an undetermined amount of dollars to stabilize the local currency.
During the week, the shilling fell to a historic low of 120.82 against the dollar, the Central Bank said in its update published Friday evening.
The shilling has fallen 7% against the dollar since the start of the year, but despite the decline, the Central Bank has asserted that “usable foreign exchange reserves remain sufficient” to cushion the decline of the Kenyan currency and cover importers’ requests.