This archive report was first published on 16 July 2020.
Published on July 16, 2020, figures from the Central Bank of Kenya (CBK) revealed that foreign currency bank deposits held by Kenyans surged to Sh. 671.4 billion during the three-month corona semi-lockdown.
Notably, this increase occurred in a period when Kenya announced its first Covid-19 cases and imposed strict restrictions, including a dusk-to-dawn curfew.
According to a report by the Business Daily, the rise in foreign currency bank deposits indicates that the wealthy are protecting their value and hedging rather than seeking new areas in which to invest their fortunes.
As a result, holding their billions in dollars translates to higher value, given the shilling's slump from Sh. 101.87 per US dollar in February to Sh. 107.29 on July 15.
Additionally, data from the CBK showed that the total cash in circulation stood at Sh. 241.96 billion in February, down from Sh. 265.87 billion in the same month last year.
