How strong macro buffers are seeing Kenya through Iran shock
Nairobi, June 24 -- Kenya's strengthened macroeconomic buffers, including a narrower current account deficit and sizable official reserves, have helped the country absorb shocks from the US-Israel war on Iran, sustaining its assessment of being at a lower risk of debt default.
Sovereign credit ratings agency Moody's notes that its recent upgrade of Kenya as a long-term foreign currency sovereign credit rating from "Caa1" to "B3" in January has largely held firm through the Middle East crisis which has resulted in a sharp spike in fuel prices.
Kenya's usable foreign currency reserves have come under pressure but have largely held above five months of import cover, standing at Sh1.7 trillion ($13.14 billion) as per the latest CBK data whi...
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