CBK ready to shield shilling against Brexit fallout


CBK ready to shield shilling against Brexit fallout

The Central Bank of Kenya (CBK) has reaffirmed its commitment to support the shillings following Great Britain’s vote to leave the European Union.

Already the sterling pound has dropped to a 31 year low against the dollar with the ripple effects expected in the global economy.

For Kenya, Central Bank Governor Dr Patrick Njoroge says the CBK is ready to intervene in the money and forex exchange market to support the shilling.

“The Central Bank of Kenya stands ready to intervene in the money and foreign exchange markets to ensure their smooth operation. Other major central banks have also announced their readiness to intervene to minimize disruption in their markets,” Dr Njoroge said in a statement.

On Tuesday, the governor said the bank had enough forex reserves to weather the Brexit storm.

As of last week Kenya’s forex reserves stood at $7.6 billion enough to cover five months of imports. Kenya also has access to a $1.5 billion emergency credit facility from the International Monetary Fund (IMF) to use in cases of external shocks to the economy.

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Story By Michael Karanja
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