Kenya's Foreign Exchange Reserves Reach Record High of $7.896 Billion

Kenya's Foreign Exchange Reserves Reach Record High of $7.896 Billion
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Kenya's foreign exchange reserves surged to an unprecedented $7.896 billion on Friday, reflecting a $121 million increase, according to the Central Bank's weekly financial markets update.

This rise follows Kenya's recent full repayment of its $2 billion Eurobond debt, initially taken in 2014, using a loan from the World Bank. The reserves had previously stood at $7.775 billion the prior week.

Kenya completed the remaining 72 billion shillings (approximately $558.16 million) of the Eurobond debt before the June 24 deadline. Earlier in February, the country had raised $1.5 billion through a Eurobond buyback offer to mitigate the risk of defaulting on repayment.

"The usable foreign exchange reserves remained adequate at $7.896 billion, an equivalent of 4.1 months of import cover. This meets the statutory requirement to endeavor to maintain at least 4 months of import cover," stated the Central Bank.

The increased forex reserves bolster the Central Bank's ability to support the Kenyan shilling in the event of pressure from international currencies. Despite this, the shilling has remained stable against both regional and global currencies, averaging 128.68 to the dollar this week, as noted by the Central Bank.