Ngimanene na Muchere
Elder Lister
The shilling is hurtling to 120Kes to the USD and how did we get here? Omba omba ya Konyags worse than kithitu ya @Field Marshal
You wonder how the shilling slipped from 100 to 115. It goes back to 2018. At the time the shilling traded between 100-103. A very tight range. Too tight, in fact that the IMF declared it a government controlled currency, as opposed to a floating currency that is determined by pure market factors .Why is this important? Because Kenya was looking for loans from the IMF, which have to be paid back in dollars. On top of all Chinese loans.
For every shilling depreciation, external debt rises by ksh 45b. So Moving from ksh 100-115, means external debt rose by ksh 500b.
So IMF accused Kenya of hiding the true value of the shilling, to avoid rising debt and reflect the current debt country was in. As a result, Kenya entered an agreement with the IMF, to stop controlling the value of the shilling. As a condition to borrow loans.
So it’s projected to land to 120 by year end.
www.businessdailyafrica.com
This is the ringtone wamemuekea Konyags akipiga simu Hata majirani wamechoka kumuona wakusema fungeni milango anakuja....... Do you know what it takes mpaka Wachinku wamechoka na ombaomba komba mwiko Konyags?
You wonder how the shilling slipped from 100 to 115. It goes back to 2018. At the time the shilling traded between 100-103. A very tight range. Too tight, in fact that the IMF declared it a government controlled currency, as opposed to a floating currency that is determined by pure market factors .Why is this important? Because Kenya was looking for loans from the IMF, which have to be paid back in dollars. On top of all Chinese loans.
For every shilling depreciation, external debt rises by ksh 45b. So Moving from ksh 100-115, means external debt rose by ksh 500b.
So IMF accused Kenya of hiding the true value of the shilling, to avoid rising debt and reflect the current debt country was in. As a result, Kenya entered an agreement with the IMF, to stop controlling the value of the shilling. As a condition to borrow loans.
So it’s projected to land to 120 by year end.
CBK’s new exchange rate policy is bad
Kenyans have been wondering how the Central Bank of Kenya has not intervened in the foreign exchange market when the Kenya shilling has been constantly depreciating against the dollar.
www.businessdailyafrica.com
This is the ringtone wamemuekea Konyags akipiga simu Hata majirani wamechoka kumuona wakusema fungeni milango anakuja....... Do you know what it takes mpaka Wachinku wamechoka na ombaomba komba mwiko Konyags?
