The Clap
Foreign reserve balances at the CBE increased by $41 million at the end of April 2022, to a record $37.123 billion.
Claps Class
A reserve is a monetary cover from foreign currencies or assets such as gold, established by the state in order to be able to pay its external expenditures, support its domestic currency, and provide certainty to cover essential commodities required in times of crisis.
Why this matters
The government has resorted to foreign reserves in recent times to compensate for the exit of foreign investors from government bonds, in addition to subsidizing basic commodities after their prices increased.
