CBK clarifies claims of currency shortage by DP Gachagua
The Central Bank of Kenya has denied claims made by Deputy President Rigathi Gachagua, who said that the government did not have enough foreign exchange reserves to satisfy Kenya’s oil demand.
Gachagua made the remarks during an interview with Citizen TV on Sunday, October 2, 2022.
The deputy president claimed that as of Saturday, October 1, the CBK lacked sufficient foreign exchange reserves to facilitate the importation of oil, a claim to which the Central Bank objected.
“The Central Bank of Kenya (CBK) notes the comments by the Deputy President, His Excellency Rigathi Gachagua, in an interview on Citizen Television on October 2, 2022. CBK would like to provide the correct position regarding where oil importers obtain the requisite foreign exchange and the adequacy of CBK's foreign exchange cover,” the bank said in a statement released after the interview.
The CBK explained that it solely manages the government's foreign financial commitments, not those of commercial oil importers.
The Central Bank also assured the country that its foreign reserves were within the required threshold and that there was no cause for alarm.
“CBK does not supply foreign exchange for transactions other than for the National Government (i.e, the government's imports or debt service payments) or CBK's operations. Oil importers, therefore, obtain their requisite foreign exchange from the commercial banks and not CBK,” the document read in part.
