Well-off individuals and companies banked a record Sh63 billion more in dollar accounts in June as they searched for safety for the investments ahead of this week’s elections.
Central Bank of Kenya (CBK) data shows that foreign currency bank deposits held hit a historic high of Sh891.5 billion in June, up from Sh829.50 billion in May, making it the biggest monthly jump on record.
The Sh63 billion increase in dollar deposits, equivalent to Sh2.1 billion daily.
“The jump is big so I would not attribute it to the weakening of the shilling but rather hard currency conversions as we moved towards the elections with the risk of a protracted election in mind like was witnessed in 2017,” said Churchill Ogutu
In times of trouble, all sorts of companies, banks and investors want to hold dollars. It is the world’s reserve currency and considered the safest.
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