Kenya says has enough forex reserves to weather any Brexit fallout

by Reuters 24 views0

Kenya says has enough forex reserves to weather any Brexit fallout

Kenya’s central bank has enough foreign exchange reserves and funds available from an IMF standby facility to weather any fallout from a British referendum on whether to leave the European Union, the governor said on Tuesday.

“We think we are in a comfortable position,” Governor Patrick Njoroge told a news conference, adding that a British vote to leave the EU could hurt the global economy and Kenya would “feel the shock wave”.

Kenya’s foreign exchange reserves stood at $7.6 billion on June 16, equivalent to five months import cover, according the central bank figures on its website.

In March, the International Monetary Fund approved two-year standby facilities for Kenya worth about $1.5 billion, which can be drawn on if the East African nation faces unforeseen shocks.

Britons vote in the referendum on EU membership on Thursday.

 

(Reporting by George Obulutsa; Writing by Edmund Blair)