Shilling Stabilising

mzeiya

mzeiya

Elder Lister
Of course the title of this post is an oxymoron since we were used to having the shilling trading @100 vs the dollar for the longest time.

However, those of us who get paid in USD and exchange to KES either internally or through the various forex bureaus know that the local currency had slid so much that at one point it did hit the 165 mark.

Personally, I once got 163 exchange rate to lay a deposit to something and on calling today, best they can do is 158.5. This would be considered usual when the trading week starts but it has been the trend now for a while.

Whatever you do with this info is up to you especially if hoarding the green currency or you are interested in investing in portfolios such as real estate, overseas trade markets and importation of high value assets such as, but not limited to vehicles.

Screenshot taken just now 👇🏾
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Tiiga Waana

Tiiga Waana

Elder Lister
mzeiya said:
And 3 minutes ago
View attachment 92486
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I totally agree with you that this is good.
However we must be prudent and pragmatic enough to interrogate why this has happened.

Is it due to the good and insightful fiscal policies put afoot by this Government? NO!
Is it due to macro-economics policies adopted? NO!
Is it as a result of micro-economics policies bringing more productivity and money to individuals and SMEs? NO!

Here is the reason behind this verbatim from the newspapers: the disbursements of Dollar denominated loans - it has nothing to do with Government’s interventions or policies or our productivity.
So, what happens when these loans are used up? Will the Ksh still stand up against other currencies and maintain this value?
 
Ole Waru

Ole Waru

Elder Lister
Tiiga Waana said:
I totally agree with you that this is good.
However we must be prudent and pragmatic enough to interrogate why this has happened.

Is it due to the good and insightful fiscal policies put afoot by this Government? NO!
Is it due to macro-economics policies adopted? NO!
Is it as a result of micro-economics policies bringing more productivity and money to individuals and SMEs? NO!

Here is the reason behind this verbatim from the newspapers: the disbursements of Dollar denominated loans - it has nothing to do with Government’s interventions or policies or our productivity.
So, what happens when these loans are used up? Will the Ksh still stand up against other currencies and maintain this value?
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when are the due loans supposed to be paid, i heard we're almost defaulting
 
Field Marshal

Field Marshal

Elder Lister
Tiiga Waana said:
I totally agree with you that this is good.
However we must be prudent and pragmatic enough to interrogate why this has happened.

Is it due to the good and insightful fiscal policies put afoot by this Government? NO!
Is it due to macro-economics policies adopted? NO!
Is it as a result of micro-economics policies bringing more productivity and money to individuals and SMEs? NO!

Here is the reason behind this verbatim from the newspapers: the disbursements of Dollar denominated loans - it has nothing to do with Government’s interventions or policies or our productivity.
So, what happens when these loans are used up? Will the Ksh still stand up against other currencies and maintain this value?
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Bae, 2023 was yet another wasted year when we should have started a family. Legalise me sweetheart....
 
kibinda nkoye1

kibinda nkoye1

Lister
Field Marshal said:
That is not desirable. A stable rate around 130 will be great.

The shilling had also lost greatly against regional currencies but it has made a serious fightback.

Let's wait and see....
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Word on the street is that the chinese are celebrating the year of the dragon. The factories are temporarily closed hence the demand for the dollar is lower than normal. In March when we start ordering again after the factories are open the KES to USD will approach 180
 
Denis Young

Denis Young

Elder Lister
mzeiya said:
At over 10% interest rate compared to others getting at 7%. Shida ni we are categorised as a middle income country ama?
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Those are debut Eurobonds. The interest rate is a reflection of their risk profile/credit rating. Sisi on the other hand, we are refinancing and confidence in our credit worthiness is reflected by the higher interest rate.

However, the expectation is that at some point we will be able to refinance this bond for lower interest rates. Interest payment costs will also be lower if the shilling continues strengthening as is the expectation.

It seems the dollar liquidity challenge is easing. Couple that with cutting of interest rates by the FED and we should see a favourable ending to 2024.
 
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