Kenya’s foreign exchange reserves have dropped below the set threshold of 4.5 months of import cover, exposing the country to high volatilities in the global market, daily newspaper The Star reported on Monday.

The latest weekly bulletin by the Central Bank of Kenya (CBK) showed that the nation’s reserve dropped by $0.23 billion (Sh27.1 billion) in the week ended July 22 from $7.95 billion (Sh942 billion) reported in the previous week.

The country recently received a $235.6 million (Sh27.8 billion) loan as part of the International Monetary Fund’s (IMF) cushion fund approved in April last year.

According to the central bank, the usable foreign exchange reserves remain adequate and meet the set threshold of four months of import cover.

International institutions, including Moody’s, World Bank and IMF, have warned of further weakening of the Kenyan shilling, as the country moves towards the August 9 general election.

(Editing by Seban Scaria