Kenya’s foreign exchange reserves will drop $ 254 million if the loan is repaid

The Governor of the Central Bank of Kenya (CBK), Patrick Njoroge, shows some of the new killing Kenyan banknotes during a press conference in his office in Nairobi on June 3, 2019. – The unveiling of the new Kenyan banknotes was greeted with disapproval by some, with the Kenyans making an exception to the use of an image of a statue of Founding Father Mzee Jomo Kenyatta printed on the banknotes. According to the Kenyan Constitution of 2010, banknotes and coins cannot bear a person’s portrait. (Photo by SIMON MAINA / AFP) (Photo credit should be SIMON MAINA / AFP / Getty Images)

Kenya’s foreign exchange reserves have fallen by 27.8 billion shillings (around $ 254 million) since early March, which has been hurt by the repayment of external loans.

FILE PHOTO: The Central Bank of Kenya (CBK) Governor Patrick Njoroge shows off some of the new looks used to puff Kenyan banknotes during a press conference in his Nairobi office. (Photo credit should be SIMON MAINA / AFP / Getty Images)

Foreign exchange reserves fell from $ 7.605 billion at the end of February to $ 7.351 billion on March 11, the Kenyan central bank (CBK) said in its weekly update of the financial markets published on Friday.

Kenya’s external debt currently stands at $ 35 billion. One of the loan packages whose interest payment has been due in the past few days is the $ 2 billion Eurobond, which was borrowed in 2018.

Despite the decline, Apex Bank found the reserves were sufficient to meet the country’s import bill and support the shilling when needed.

“The usable foreign exchange reserves remain appropriate. This is in line with CBK’s legal obligation to endeavor to maintain import coverage for at least four months, ”said Apex Bank.

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