IMF Sees Further Decline in Kenyan Foreign Reserves on High Borrowing Costs

The International Monetary Fund expects a further decline in Kenya’s foreign-currency reserves next year as high borrowing costs limit access to global credit markets.

The important buffer to short-term shocks and fending off currency depreciation is still expected to remain adequate, the IMF said in a statement on its website after approving a $447 million loan to Kenya. That’s even as the holdings have fallen below the nation’s four months’ import cover target since Nov. 23.