NAIROBI, Kenya, Oct 9 – The Central Bank of Kenya (CBK) is increasing its US dollar purchases from local banks to stabilize the currency amid rising volatility.
Governor Kamau Thugge noted that this move responds to higher foreign exchange inflows, particularly from remittances.
As of October 5, 2024, the CBK’s forex reserves reached $8.186 billion, sufficient to cover 4.25 months of imports, an increase from $7.503 billion on September 5.
“It is true that we’ve had significant increase in foreign exchange both from banks but also remittances. In order to moderate the fluctuations in the exchange rate, we have been buying foreign exchange,” he said.
Thugge emphasized that the primary goal of the repurchase is to ease volatility rather than directly influence exchange rate fluctuations.
He reaffirmed the bank’s commitment to intervene as needed to maintain exchange rate stability.
“This falls within the preview of CBK, including intervening when the exchange rate has to weaken,” he added.
The CBK stated that these efforts aim to maintain a stable economic environment while navigating the complexities of the foreign exchange market.
