NAIROBI, April 15 (Xinhua) -- Kenya's foreign exchange reserves declined 9.42 billion shillings (about 70 million U.S. dollars) this week, piling pressure on the shilling that similarly fell to a new low, the Central Bank of Kenya said in its update of the financial markets released Friday evening.
The reserves stood at 6.38 billion dollars at the end of the week, an equivalent of 3.56 months of import cover, according to the apex bank.
This was a decline from 6.45 billion dollars or 3.60 months of import cover the previous week.
The shilling closed Friday at 135 against the dollar, the lowest rate ever.
The local currency has been on a free fall against the dollar, declining over 7 percent year on year with the Central Bank experiencing challenges in supporting it due to dwindling forex reserves.
The bank, however, said the foreign exchange reserves remain adequate.
"This meets the statutory requirement to endeavor to maintain at least four months of import cover," said the apex bank.
To save its forex reserves, Kenya this week imported 165,000 metric tons of gasoline, diesel and jet fuel from the Gulf in a government-to-government deal that is expected to reduce dollar demand and cushion the shilling. ■