Kenya’s foreign reserves plunge as rising import costs drain dollars

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Kenya’s foreign reserves plunge as rising import costs drain dollars
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Reserves drop to the lowest since September 2015 and are set to fall further as oil rises

Kenya’s foreign exchange reserves plunged the most in more than a decade in the three months through to end-March as rising costs for imports drained dollars from the central bank.

The East African nation’s reserves dropped 13.6%, on a quarterly basis, to $6.43bn in the period, according to the central bank’s data. That’s sufficient for just more than three-and-a-half months of imports, compared with a requirement to maintain at least four months of coverage. The reserves dropped to the lowest since September 2015, according to data compiled by Bloomberg...

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