Kenya FX reserves enough to cushion currency volatility - central bank

NAIROBI Mon May 26, 2014 3:37am EDT

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NAIROBI May 26 (Reuters) - Kenya's central bank holds adequate foreign exchange reserves to cushion the shilling against temporary shocks that left the local currency trading at two-and-a-half year lows late last week, the bank's governor said on Monday.

Governor Njuguna Ndung'u blamed seasonal factors including the payment of corporate dividends to foreign shareholders for the volatility.

"The current level of foreign exchange reserves ... are sufficient to provide adequate cushion against temporary shocks," Ndung'u said in a statement, adding a planned Eurobond issue would bolster reserves further. (Reporting by Richard Lough; Editing by James Macharia)

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