Kenyans withdrew Sh34.2 billion from their dollar accounts in two months as confidence in the local currency went up. Between April and May, foreign currency deposits in Kenyan banks reduced by Sh17.3 billion, data from CBK shows. The foreign exchange if critical for balance of payment needs such as payment of external loans and importation of critical inputs such as oil. Kenya also issued a $1 billion (Sh108 billion) Eurobond, which increased the country’s official reserves of foreign currency to $9,590 million (Sh1.34 trillion) by July 8. This was the highest level of foreign currency reserves since July last year, enough to cover the country’s imports for 5.86 months.

Source: Standard Digital July 16, 2021 19:24 UTC