Kenya’s Dollar Deposits Up 7.6% to Hit a Record $7.5 billion Ahead of Elections

Kenyans ramped up their wealth held in dollars ahead of the country’s general elections that occurred on 9th August 2022.

According to reports, the value of savings in dollar-denominated bank accounts rose by $527 million from May 2022 to June 2022.

As reported by the Business Daily Africa, data from the Central Bank of Kenya shows that foreign currency bank deposits held hit a historic high of $7.5 billion in June 2022, up from $6.9 billion in May 2022, making it the biggest monthly jump on record.

This latest move has been interpreted as wealth preservation by Kenyans looking to protect their assets, with the country having a history of contested elections that have resulted in violence and prolonged business closure.

______________________________________________________________________

SEE ALSO: Kenya Inflation Rises to 8.3% in July 2022 – The Highest in 5 Years

______________________________________________________________________

Other than election, Kenya is one of the countries in Africa that has been hit hard by tough economic times, with the country’s latest inflation rate hitting 8. 3% in July 2022, the highest in 5 years. The high inflation has been accompanied by an increase in the cost of living, with rising food and fuel prices reported ahead of the election.

One of the biggest factors however for the move has been the devaluation of the country’s fiat currency, the Kenyan Shilling (KES), against the dollar. The latest data indicates that Kenyans require about 119 shillings to purchase the dollar, a figure which has risen by about 10 shillings in the last 12 months.

Further analysis reveals that speculators in Kenya may have been looking to gain profits as the dollar goes from strength to strength following the US Central Bank raising interest rates.

The latest development comes as businesses in Kenya struggle to get dollars to meet their business obligations, amidst a shortage of the dollar within Kenyan banks, a situation that has also been felt in Nigeria.

The dollar is also favored because it is perceived as the most secure against economic stress.

______________________________________________________________________

RECOMMENDED READING: African Crypto Users Grew by 2,500% in 2021 Largely Driven by Inflation, Says Latest KuCoin Report

______________________________________________________________________

Thank you for your support by helping us create content:

BTC address: 3CW75kjLYu7WpELdaqTv722vbobUswVtxT

ERC20 Address: 0x03139524428e40E31f13909f8D994C915FB91277

SOL address: 9cC65AWFHj848kntcoyiT8av3jiRQEqyTTmBR1GvVUb

____________________________________________________________________

Follow us on Twitter for the latest posts and updates

Join and interact with our Telegram community

_____________________

Subscribe to our YouTube channel below for more updates:

_____________________________________________________________