Forex reserves swell to four-month high on IMF Sh79bn injection

Tuesday, May 19, 2020 0:01

By CHARLES MWANIKI

CBK governor Patrick Njoroge.

PHOTO | DIANA NGILA 

The disbursement of the $739 million (Sh79 billion) economic support loan from the International Monetary Fund (IMF) has helped push the Central Bank of Kenya (CBK) forex reserves to the highest level in four months, promising support for the shilling, which has come under pressure against the dollar this year.

“Foreign exchange reserves are projected to remain adequate through 2020 (helped by) additional financial flows from international finance institutions in support of the government’s efforts, such as the IMF rapid credit facility of $745 million and World Bank’s $1 billion,” CBK governor Patrick Njoroge told a Senate committee in a presentation on May 7.

“Foreign exchange reserves are projected to close the year at about five months of import cover.”

In early March, CBK said it would buy $400 million (Sh42.8 billion) from banks over a period of four months to increase dollar reserves amid rising uncertainties in the global market over the coronavirus outbreak.