Kenya says has enough forex reserves to weather any Brexit fallout

by Reuters 0

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)