NAIROBI, Oct. 2 (Xinhua) -- Kenya's foreign exchange reserves shed 36 million U.S. dollars last week to fall below five months of import cover.
The dollar reserves fell from 7.52 billion dollars, an equivalent of five months of import cover, to 7.48 billion dollars, or 4.9 months of import cover, Central Bank of Kenya data showed Monday.
The decline in foreign exchange reserves indicated a high demand for the dollar by retail importers, in particular those shipping in oil and other merchandise, with the apex bank said to have sold unspecified amount of dollars last week to cushion the Kenya shilling.
The regulator normally intervenes to buttress the national currency to prevent it from falling to levels that may destabilize the market.
Last Thursday, the shilling slipped to trade against the dollar at 103.34 from 103.27, with the drop being the biggest since the start of the week.
However, it closed the week stronger Friday at 103.25, reportedly after central bank intervention. On Monday, Central Bank data showed the shilling continued on a positive path, rising to 103.22.
Commercial banks, however, quoted the currency to the greenback at the 103.10-103.30 level. Enditem
