Friday June 21, 2019 - Central Bank of Kenya (CBK) Governor, Dr Patrick Njoroge, has admitted that the Kenyan Shilling has weakened following the Government’s plans to phase out the old Sh 1,000 note by October this year.

On Thursday, the shilling sunk into the 102 margin for the first time since early January to trade at Sh102.05 compared to Sh101.55 the previous day.

However, Njoroge said Kenyans should not panic over the weakening of the shilling, saying it will soon stabilise.

“The movement it has had over the last few weeks is not an issue,” Njoroge said

The CBK boss further said that CBK is holding that highest foreign reserves in Kenya’s history, enough to caution the shilling in case of volatility, adding that the depreciation witnessed should not cause panic in the market.

CBK’s usable foreign exchange reserves were at $10.08 billion/ Sh1.08 trillion (6.4 months of import cover) as at June 13.

He further dismissed reports that the expected demonetisation is pumping excess liquidity in the market as mass holders rush to beat the exchange deadline.


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