{"id":30419,"date":"2021-06-28T16:49:22","date_gmt":"2021-06-28T16:49:22","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=30419"},"modified":"2021-06-28T14:48:33","modified_gmt":"2021-06-28T14:48:33","slug":"imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion","title":{"rendered":"IMF loan, Eurobond boosts Kenya’s forex reserves by Sh76 billion"},"content":{"rendered":"

Africa-Press<\/a> – Kenya<\/a>. <\/strong><\/span>Kenya’s forex reserves rose to the highest level since September last year after the International Monetary Fund (IMF) disbursed the second part of $2.34 billion loan last week.<\/p>\n

The international lender approved the disbursement of a further Sh43.8 billion after first reviews of IMF\u2019s arrangements with Kenya under the extended fund facility (EFF) and the extended credit facility (ECF).<\/p>\n

The new flows take Kenya\u2019s total disbursements from the program to Sh77 billion ($714.5 million).<\/p>\n

Proceeds from the programme are expected to be channeled to budgetary support for the remnant of the 2020-21 fiscal year which ends on June 30 and the subsequent 2021\/22 financial year.<\/p>\n

The Weekly bulletin from by the Central Bank of Kenya shows that the country’s forex base rose to $8.11 billion (Sh866.7 billion) on Friday compared to $7.4 billion (791.8 billion) last week.<\/p>\n

The country’s reserves which hit a high of $9.42 billion or 5.8 months of import cover in July last year have been on a downward trend, threatening to drop below the East Africa Community\u2019s convergence criteria of 4.5 months of import cover.<\/p>\n

“The usable foreign exchange reserves remained adequate at $8,114 million (4.96 months of import cover) as at June 24. This meets the CBK\u2019s statutory requirement to endeavour to maintain at least 4 months of import cover, and the EAC region\u2019s convergence criteria of 4.5 months of import cover,” CBK said.<\/p>\n

Kenya has requested IMF to modify the performance criteria on international reserves; indicative targets on tax collection and the structural benchmark on a common public sector payroll.<\/p>\n

Apart from IMF’s loan, Kenya’s forex reserves might have been boosted by proceeds from the country’s fourth Eurobond and high diaspora remittances.<\/p>\n

Two weeks ago, the country raised $1 billion (108 billion) debt in a new Eurobond that was oversubscribed by five fold.<\/p>\n

The 12- year facility priced at 6.3 per cent was meant to help the country settle its due loans.<\/p>\n

Yields on the country’s new Eurobonds declined by an average of 0.26 basis points in the week ended Friday June 25, easing repayment obligation for Kenya.<\/p>\n

According to CBK, Kenya\u2019s 12-year Eurobond issued on June 17, 2021 traded well in the secondary market with a yield of 6.225 per cent at close of trading on June 24 compared to the issue interest of 6.3 per cent.<\/p>\n

“The impact of the new issue caused improvement along the rest of the Kenya Eurobond yield curve reflecting pricing success achieved at the primary issuance,”CBK said.<\/p>\n

The yield on the 10-year Eurobond for Ghana rose marginally while that of Angola declined.<\/p>\n

Improving diaspora remittances evidenced by a 43.8 per cent year-on-year increase to $299.3 million in April 2021, from $208.2 million recorded over the same period in 2020, is another key factor strengthening Kenya’s forex stock.<\/p>\n

CBK data shows that remittance inflows increased to $315.8 million in May 2021, compared to $258.2 million in May 2020, representing a 22.3 per cent increase , further boosting the country’s forex reserves.<\/p>\n

The multiple factors boosting forex reserves are expected to continue hold the shilling against other international currencies after a steep fall witnessed since April last year on economic effects of Covid-19.<\/p>\n

The CBK data shows the Kenya Shilling remained stable against major international and regional currencies during the week ending June 24.<\/p>\n

It exchanged at 107.77 per US dollar on June 24, compared to 107.80 per US dollar on June 17.<\/p>\n

The strengthening of the shilling is expected to help ease importation costs, softening the cost of living as traders cut prices of basic commodities.<\/p>\n

Kenya recorded a slight increase in May inflation rate following a rise in food and transport cost. May Inflation increased from 5.76 per cent in April to 5.87 per cent in May 2021.<\/p>\n

The country’s data agency attributed the modest increase to higher costs of transport, food and non-alcoholic beverages.<\/p>\n

The cost of food and non-alcoholic beverages rose by 1.26 per cent month on month and 7.36 per cent year on year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. Kenya’s forex reserves rose to the highest level since September last year after the International Monetary Fund (IMF) disbursed the second part of $2.34 billion loan last week. The international lender approved the disbursement of a further Sh43.8 billion after first reviews of IMF\u2019s arrangements with Kenya under the extended fund facility […]<\/p>\n","protected":false},"author":84,"featured_media":30418,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[6857,7003,544],"class_list":["post-30419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nIMF loan, Eurobond boosts Kenya's forex reserves by Sh76 billion - kenya<\/title>\n<meta name=\"description\" content=\"Kenya's forex reserves rose to the highest level since September last year after the International Monetary Fund (IMF) d ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF loan, Eurobond boosts Kenya's forex reserves by Sh76 billion\" \/>\n<meta property=\"og:description\" content=\"Kenya's forex reserves rose to the highest level since September last year after the International Monetary Fund (IMF) d ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-28T16:49:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/06\/img-60d9e129af679.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"IMF loan, Eurobond boosts Kenya’s forex reserves by Sh76 billion\",\"datePublished\":\"2021-06-28T16:49:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\"},\"wordCount\":645,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/06\/img-60d9e129af679.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/imf-loan-eurobond-boosts-kenyas-forex-reserves-by-sh76-billion\",\"name\":\"IMF loan, Eurobond boosts Kenya's forex reserves by Sh76 billion - 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