CBK dips into foreign reserves to shore up shilling

Other analysts said the Central Bank may have to spend even more foreign reserve money to stabilise the shilling, especially as the Eurobond coupon comes around next month.PHOTO:STANDARD

Central Bank of Kenya (CBK) has withdrawn Sh25 billion from the country’s foreign currency reserves to cushion the shilling and pay debts, sending the country’s import cover to a five-month low.

Last week, foreign reserves stood at $7.5 billion (Sh766.8 billion) down from $7.8 billion (Sh792.6 billion) on October 6, bringing the import cover down to 4.8 months, levels last seen in June.