Forex reserves sink to a 26-month low as Coronavirus hits Kenya’s economy hardThe Coronavirus pandemic has hit the economy hard with the Central Bank’s foreign currency reserves dropping to a 26-month low.The Central Bank of Kenya’s (CBK) foreign exchange reserves dropped to $8,290 million - only enough to cover the country’s imports for 5.04 months. Read Now »However, the pandemic has seen the country witness low inflow of foreign exchange reserves due to limited exports of flowers, tea and coffee to Europe and North American which are under lockdown. Other sources of foreign exchange reserves include tourist receipts, which have also fallen after country-restricted travel to tame the spread of the virus. Also, diaspora remittances from Kenyans living and working abroad, which are other sources of foreign exchange reserves, too, seem to have been affected by the deadly virus. The travel industry, critical for earning the country foreign reserves, has been the hardest hit.

Source: Standard Digital March 22, 2020 07:30 UTC