Pan African Thinks Tank Urges Kenya To Diversify External Debt To Boost Currency Stability

A pan African think tank on Tuesday urged Kenya to diversify its sources of external debt in order to boost its currency stability.

NAIROBI (APP - UrduPoint / Pakistan Point News - 29th Jan, 2020 ) :A pan African think tank on Tuesday urged Kenya to diversify its sources of external debt in order to boost its Currency stability.

David Owiro, executive director of Africa Development Think Tank, told Xinhua in Nairobi that the composition of Kenya's foreign debt is mostly in U.S. Dollars which exposes the country to foreign currency risk.

"We are recommending that Kenya's debt portfolio include all major foreign currencies such as the Euros and the Chinese Yuan in order to reduce the volatility of the Kenyan shilling," Owiro said.

Government data indicates that the east African nation's external borrowing hit approximately 31 billion U.S. dollars.

Owiro said that the significance of the Chinese Yuan has risen globally especially after it was included by the International Monetary Fund in its basket of reserve currencies.

Owiro said that Kenya's total debt is still sustainable but the government should ensure that it does not rise above the current level.