This is a rant.
I have been seeing twitter threads on my TL of Kenyans trying to explain the dollar vs KES thingy. The problem is, most of them are just echo chambers. They are the types that never take the time to think for themselves. There is nothing I despise more than a man who cannot reason for himself and try to see what lies beyond the blizzard. Some of the reasons being echoes around include:
[ul]
[li]US treasury hiking of interest rates[/li][li]Decrease in FDIs[/li][li]A supposed global recession[/li][li]Inter-bank FX trading restrictions by the CBK[/li][li]** add other elite propaganda here **[/li][/ul]
The real reason the USD is gaining over the KES is simple: over the last 13 or so years, we have been spending most of our FX earning without proof of work. A simple scenario to explain this out is:
Let’s say total diaspora remittances for the month of February 2014 were USD 10M. Some 3 govt homos then loot KES 300M each and use that money to import Benzes, Porches, Italian floor tiles and marble floors, Rolexes and trips to shopping in Paris, London, Dubai, etc. That expenditure has been done in USDs with no real production happening to validate the KES exchanged with. That is how the FX reserves have been shrinking. And that is a soft example, it is worse if you consider most FX earnings, to the govt, during Uhuru’s tenure were bonds issued in foreign markets and that money was then squandered, and the debt still remains. This is how genuine FX earners in Kenya are enslaved, they earn the country genuine money that is used to pay off debt that is simply ‘money looted’ by very few people. The collective effort of tens of thousands is badly spent by a few hundred people.
Another factor is the uncalled printing of new currency back in 2019 by Uhuru. That guy is the real reason of the shilling weakening and the effects will be long term considering Zakayo is willing to issue other bonds to payoff loans that are due in the year 2023/24. The shilling will soon trade at 500 bob.
None of those reasons have anything to do with US treasury policies, and yes, do not expect major FDIs to happen in a country where massive corruption is evident as well as rising costs of production that relate to energy prices.
Another reason is a government that is unable to fund itself and thus relies on borrowing, this does not help the GDP in any way irregardless of what the number say. We can say the economy grew by 4% but also remember govt debt grew a lot bigger as well people whose purchasing power dropped due to inflation and shit,
Long-term solution: Privatise the CBK and KRA and then create a National Reserve Bank that deals with nothing else but setting fiscal policy backed by a truly independent senate committee in charge of govt spending.
You started very well. Then you started spewing the nonsense you accuse others of. Fact is there is a global recession courtesy of covid19 and the war in Europe. The US is a major cause of the shit Fed Reserve- and the fact that all currencies are dollar based. Russia and China aim for the end of this hegemony. And yah, locally we have the drought with 5 missed rain seasons.
kwa ufupi … kenya ikipewa loan which is in dollars, hio pesa huwa haifiki kenya wanasiasa wanaiba na kuficha nchi zingine kwa hivyo pesa ya kulipa loan in dollars hakuna inabidi itafutwe kwa njia ingine
Why was new currency printed in 2019? What was it supposed to achieve? One of the things I hated Uhuru is his tone deaf attitude towards the people of Kenya, like that currency printing with no explanation and his stupid CBC
Kiangazi inaingiliana wapi na dollar and KES weaking kama ni agricultural exports such exports aren’t affected by drought coz those plantations don’t relie on rain alone
The prefix ir negates as the suffix less does so irregardless is a double negative making it meaningless or at best negating what it is negating. Regardless