Ndachuwa
JF-Expert Member
- Mar 8, 2006
- 6,269
- 4,569
What are policy makers (Government and BoT) doing to make our shilling stable?
1. "If a factor increases the demand for domestic goods relatively to foreign goods, the domestic currency will appreciate; if a factor decreases the relative demand for domestic goods, the domestic currency will depreciate". Is there any positive initiative being done such as AGOA and like? What Ministry of Trade doing to address this?
2. "In the long run, a rise in a Country's price level (relatively to the foreign price level) causes its currency to depreciate, and a fall in the country's relative price level causes its currency to appreciate". What is government doing to reduce rocketing of food prices?
3. "Increasing trade barriers causes a country's currency to appreciate in the long run" Do we really need to continue importing sub-standard goods from china such as plastic shoes, artificial flowers, low quality electrical goods? What is the role of Ministry of Industry and SIDO in supporting small scale industries such as for shoes?
4. "Increased demand for a country's exports causes its currency to appreciate in the long run; conversely, increased demand of imports causes the domestic currency to depreciate". When our leaders will show the way for example wearing suits made from Sungflag produce? Or Stocking their refirgerators with Dodoma wine instead of South Africa wine?
5."In the long run, as the country becomes more productive relative to other countries, its currency appreciates". Has anybody linked the depreciation of our shilling to the effect of factories closed after being privatised?
NB: Exchange rate May 2006 was TZS 1200 to USD; May 2015 TZS 2,000 to USD
Source:Mishkin & Eakins, 7e
1. "If a factor increases the demand for domestic goods relatively to foreign goods, the domestic currency will appreciate; if a factor decreases the relative demand for domestic goods, the domestic currency will depreciate". Is there any positive initiative being done such as AGOA and like? What Ministry of Trade doing to address this?
2. "In the long run, a rise in a Country's price level (relatively to the foreign price level) causes its currency to depreciate, and a fall in the country's relative price level causes its currency to appreciate". What is government doing to reduce rocketing of food prices?
3. "Increasing trade barriers causes a country's currency to appreciate in the long run" Do we really need to continue importing sub-standard goods from china such as plastic shoes, artificial flowers, low quality electrical goods? What is the role of Ministry of Industry and SIDO in supporting small scale industries such as for shoes?
4. "Increased demand for a country's exports causes its currency to appreciate in the long run; conversely, increased demand of imports causes the domestic currency to depreciate". When our leaders will show the way for example wearing suits made from Sungflag produce? Or Stocking their refirgerators with Dodoma wine instead of South Africa wine?
5."In the long run, as the country becomes more productive relative to other countries, its currency appreciates". Has anybody linked the depreciation of our shilling to the effect of factories closed after being privatised?
NB: Exchange rate May 2006 was TZS 1200 to USD; May 2015 TZS 2,000 to USD
Source:Mishkin & Eakins, 7e