Posted 12/4/2023, 3:30:00 AM
Kenyan Banks' Dollar Holdings Hit Record High, Easing Shortage
- Dollar holdings by Kenyan banks hit a record high of $6.32 billion in September 2023, a 78% increase from a year earlier
- The rise reflects easing pressure on the Kenyan shilling and shows the dollar shortage is starting to ease
- A growing number of Kenyan traders are quoting prices in dollars to mitigate shilling exchange losses
- Global shocks like COVID-19 contributed to capital flight and shilling depreciation over the past year
- The central bank directed banks to ration dollars early this year amidst the shortage, but interbank trading and lifted CBK caps have since helped