The danger of Kenya’s reliance on borrowed forex reserves

Central Bank of Kenya (CBK) Governor Patrick Njoroge has revelled in this feat as it has helped the shilling to remain steady against the dollar. [Standard]

Kenya has had a checkered history with the dollar, the world’s primary reserve currency. From the exchange control days when being found with the greenback would land you in jail, to the liberalisation-era that coincided with the devaluation of the local currency, the greenback has been at the heart of Kenya’s ups and downs.

And now, the country seems to be swimming in dollars.