The Central Bank of Kenya has burned through more than $300 million in the last one month trying to protect the shilling against a bullish dollar, with analysts predicting that it could hit 105 units to the dollar by the year's end.
The Bank engages in periodic interventions, to limit the shilling's movement, and this has so far seen the country’s foreign currency reserve dropping to $8.15 billion as at the end of last week, from $8.45 billion at the start of October, and was expected to drop further at the close of business on Friday following the pressure the shilling has faced this past week.
