And Yet Ghana president was not given the best African president Award…meanwhile the guy (not mentioning names) who received the award leads a country where 1 usd = 100/- . Youths are jobless resulting to ulevi, land grabbing is the norm of the day, corruption is the 2nd name of his Government. Strikes are happening here and there from Teachers, nurses, KPA workers etc. …last bt not least…this is the best friend to the president who was given an award
correction: youths are jobless because of ulevi. I hooked up a family friend’s son in a sales job where the least commissions he made in a month was 40K. He would disappear after getting his cheque and only return when he had not a coin in his pocket. hata huyo ni Uhuru?
This’s an excerpt from an article by an economist. For the lazy n myopic critics, read the last paragraph only.
If you import a lot, you need enough dollars to pay for these imports. Ideally, exports will give you everything you need. When exports aren’t enough—which is the situation in Kenya today-- the gap needs to be filled through other financial inflows, including remittances, private investment, and support from development partners. In Kenya, over the last six months, the share of short-term flows has increased substantially. This “footloose capital” makes Kenya even more vulnerable to shocks. It often just takes a single event – even if it is completely unrelated to Kenya – to prompt these short-term flows to leave the country as quickly as they came in. This is Kenya’s overheating engine.
A weakening Shilling is not necessarily bad for Kenya’s economy. It can help to rebalance Kenya’s economy in the medium term
This’s an excerpt from an article by an economist. For the lazy n myopic critics, read the last paragraph only.
If you import a lot, you need enough dollars to pay for these imports. Ideally, exports will give you everything you need. When exports aren’t enough—which is the situation in Kenya today-- the gap needs to be filled through other financial inflows, including remittances, private investment, and support from development partners. In Kenya, over the last six months, the share of short-term flows has increased substantially. This “footloose capital” makes Kenya even more vulnerable to shocks. It often just takes a single event – even if it is completely unrelated to Kenya – to prompt these short-term flows to leave the country as quickly as they came in. This is Kenya’s overheating engine.
A weakening Shilling is not necessarily bad for Kenya’s economy. It can help to rebalance Kenya’s economy in the medium term
I don’t know where this kind of thinking originated from, ati the status of a country’s currency against the dollar is a reflection of it’s overall economic outlook. Ghana’s economy right now is in the doldrums, partly as a result of discovering oil. Kenya is doing better than Ghana. http://www.theguardian.com/global-development/2014/aug/08/ghana-imf-oil-inflation-currency
I am saying this for the last time. The exchange rate numbers reflect not the worth of a currency.That you get 25 Uganda shillings for 1 Kenya shilling does not mean that the Kshs is stronger than the UGshs.
I like free market economies, if the regulators do their thing well. When exports are less than imports, the currency depreciates, hence making imports expensive thus reducing them and very lucrative to exporters thus encouraging them. The reverse should be true but guys like China don’t allow free market to determine their currencies value