Since mid-May 2016, the CBK’s foreign exchange reserves have been experiencing a downward trend as the CBK continues in its efforts to stabilize the Kenyan shilling against shocks both internal and external.
On 23rd June 2016, the CBK reported a 1.08% decline in its foreign exchange reserve which translates to the largest decline year to date. This was mainly attributed to the CBK’s effort to stabilize the Kenyan shilling against the negative external impact of the Brexit announcement.
Even with this decline, the months of import cover stands at 4.91 which is still much higher than the 4 months Kenya normally holds. At the moment, this should not sound much of an alarm but it should be seen as a key signal on the ‘fight back’ power the CBK has.
Finance Minister Henry Rotich – “We will take appropriate action should there be any impact from Brexit.”