The Central Bank Governor Dr. Patrick Njoroge has refuted claims that the demonetization of the Ksh1,000 note is the cause of the latest reports of the Kenyan shilling declining in value against the dollar.
“The movement it has had over the last few weeks is not an issue,” Dr. Njoroge told reporters during a press conference last week.
The Kenyan Shilling is currently selling at Ksh102.11 per dollar from an average of KSh101 per dollar recorded at the start of June.
Citi Research have also expressed their support in line with governors’ remarks in their report stating, “We expect no significant issues around the issuance of the new banknotes.”
Agricultural exports, tourism, and manufactured exports are some of the sources that the country’s foreign income flow from. This has seen the shilling remain stable since the year 2015 hence a stable economy.
However, CBK Governor guaranteed Kenyans that his team will be ready for any outcome, despite the currency’s stability being expected to persist in 2019 and 2020.
The country’s foreign exchange reserve currently amounts to $10 billion.
