Kenya’s FX Reserves Remain Stable – CBK

Kenya’s foreign exchange reserves remain stable, the Monetary policy Committee said on Tuesday attributed to a continued narrowing in the current account deficit and balanced inflows.
Data from the CBK shows that the current account deficit narrowed to 5.3 percent in the 12 months to July from 5.6 percent in June 2018.
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The regulator expects it to ease further to 5.4 percent by December 2018 “ with a strong performance of agricultural exports particularly tea and horticulture, resilient diaspora remittances and improves receipts from services particularly tourism.”
In the first six months of 2018, diaspora remittance recorded a 37.2 percent y/y growth to USD 208.9Mn.
This will be further supported by CBK foreign exchange reserves, currently at USD 8.83Bn (5.6 months of import cover) “Continue to provide adequate cover, and a buffer against short-term shocks in the foreign exchange market.”
The precautionary IMF facility held at the Central Bank (USD 1Bn Stand-by Arrangement) expired on 14th September.