Kenya's dollar reserves edge up as inflows rise

NAIROBI, Dec. 11 (Xinhua) -- Kenya's forex exchange reserves surged by 30 million U.S. dollars in the last week as inflows from foreign investors into the east African nation rose.

The dollar reserves, which had in previous weeks been on a downward trend, rose to 7.12 billion dollars, an equivalent of 4.8 months of import cover, at the end of last week, Central Bank of Kenya (CBK) data showed Monday.

At the end of November, the foreign exchange reserves stood at 7.09 billion dollars, an equivalent of 4.7 months of import cover. The reserves fell from a peak of 7.5 billion dollars in September.

There has been an increase in inflows in Kenya, especially from foreigners investing at the stock and debt markets in the last one week.

Foreigner investors, especially at the stock market, traded mainly in leading telco Safaricom, pushing it to a new high of 0.26 dollars.

Analysts have attributed the rise in the foreign exchange reserves to improved business environment following the swearing-in of President Uhuru Kenyatta after a lengthy electioneering period.

With the increased dollar reserves, the apex bank is in a good position to support the Kenya shilling in case it faces pressure from international currencies. The shilling is currently trading at an average of 103.00 to the dollar. Enditem