Why shiling is depreciating at alarming speed!
- Thread starter Mwikimbi
- Start date
Netanyahu
Senior Member
- Oct 2, 2008
- 147
- 23
Baada ya serikali kutangaza kuwa kiyama cha mafisadi na wasaidizi wao kinakaribia (chini ya siku 10 zimebaki) inawezekana mafisadi na wasaidizi wao wananunua dola nyingi kwa njia halali au mitaani na kuzikimbiza nje ya nchi kama sehemu ya uhamishaji mali zao kuzificha kwenye usalama ili likitokea la kutokea mali zao ziwe salama.Na hata serikali ikiwapata haitapata pesa zao.
AbdulKensington
Member
- Oct 21, 2008
- 72
- 6
Tatizo ni kwamba tuna-import zaidi ya ku-export resulting to an unfavourable balance of Payment position ndio maana currency yetu haina thamani. Halafu tatizo ni kwamba our values of imports are too high kwa mfano, mtu aki-import Land Cruiser VX yenye thamani ya millioni mia je tutahitaji ku-export mazao kiasi gani ili tubalance na importation ya hio gari? ni kiasi kikubwa sana. na huu ni mfano mmoja tu bado hatujahesabu vitu vingine vya thamani mno ambavyo vinaletwa nchini. Nchi hii inahitaji 'industrialisation' phase kama nchi zingine zote zilizoendelea. Hao mafisadi japo wajenge viwanda na hizo pesa kuliko kuzipeleka nje.
Zakumi
JF-Expert Member
- Sep 24, 2008
- 5,063
- 2,471
Najua utakuwa unagonga kichwa ukutani na kusema: HIRI LIJAMAA BWANA RINARETARETA UBISHI TU KATIKA MASUALA YA UCHUMI.
Mulugwanza
Member
- Feb 3, 2008
- 88
- 18
Kinachotekea ni kuwa baada ya matatitizo ya kifedha huko US na europe na kusababisha mabenki mengi makubwa kupoteza uhai na index za masoko yote duniani kushuka, Mabenki ya huko yameogopa kukopeshana kwenye soko la Mabenki (interbank money market) na hivyo imelazimu mabenki ambayo yana matawi au subsidiary huku kwenye emerging markets ku-finance their daily operations kutoka huku kwetu. Kilichotokea ni kuwa haya Mabenki yameingia kwenye soko la fedha la ndani (IFEM) na kununua kila dolla iliyokuwepo ili kuzipeleka kwa parent kurescue situaation. Wakati huohuo BOT hawana uwezo kwa sasa wa kuishusha rate kwa sababu reserve yao imeyumba pia!!!!!!!!!!!!!!!!!!!
Zakumi
JF-Expert Member
- Sep 24, 2008
- 5,063
- 2,471
Hata kabla hatujaenda kwenye industrialization kuna mambo mengi tu tunaweza kufanya.
Kama status ya viongozi kuwa na ma VX na magari ya kifahari basi kila mtu mwenye uwezo akipata pesa atakimbilia VX.
Tuanze na kujenga tabia ya kujikimu.
Zakumi,
Hapana mkuu hapa ni kueleweshana tu. Kila mtu kuna vitu anajua kuliko mwingine. Tukiunganisha pamoja ndio uzuri wa JF. Wakati mwingine kubisha ndio njia ya kujua.
Uchumi ni mgumu sana. Mwaka jana nilisoma financial strategy, mimi kama Engineer nilikuwa naona mambo mengi ni madudu tupu.
Lakini thanks to credit crunch, kwa kusikiliza radio/TV tu nimejifunza mengi kuliko miezi sita ya kuhangaika na hiyo financial strategy.
Ningelikuwa na uwezo wa kurudia hilo somo sasa wangenikoma kwi kwi kwi!!! (It doesn't matter what you know, but when did you know it).
Zakumi
JF-Expert Member
- Sep 24, 2008
- 5,063
- 2,471
Thamani ya pesa kushuka inafanya vitu vinavyozalishwa na huduma nyingi zinazozalishwa ndani ya nchi husika kushuka bei kwa watu wanaotoka nchi yenye thamani kubwa ya pesa. Lakini vitu vinavyoagizwa kutoka nje au kutegemea sana spear kutoka nje vinapanda bei.
Mtanzania anayeishi nje aji Tanzania kununua laptop, Landcruser, TV au commodities za kutoka nje. Mtu anayeishi nje ya Tanzania nategemea anunue kiwanja, shamba au kuwaajiri watanzania wenzake wamfanyie kazi za ujenzi au shambani. Na katika kipindi cha matatizo ya kiuchumi, mtu mwenye pesa ya kigeni yenye nguvu atafanya hizo kwa bei poa.
Kwa mfano wakati wa ukame uliopita nilikuwa najenga nyumba mikoani. Na msimamizi akanishauri nijenge haraka kabla ya watu hawajavuna. Kwa sababu wakivuna hawatakubali kupokea posho waliyokuwa wanapokea. Na kipindi hicho shillingi ilishuka thamani.
Na kwa mfano wako wa Zimbabwe. Kwa mtu anayeishi nje ya nchi ni wakati mzuri wa kununua properties kwa sababu Mugabe akiondoka na kupatikana mtu ambaye anaweza kurekebisha uchumi wa nchi, properties zita-appreciate haraka haraka.
Mimi sijasoma mambo ya uchumi au injinia lakini najaribu kuwa speculant kama George Soros.
Something is happening at least in East Africa, which is difficult to explain since nothing much has happened in the economies to cause this. Just like in TZ, in Kenya, exchange rate imeporomoka from 62/= mpaka 80/= in a few weeks. in Uganda from 1653/= (end of Sept) mpaka 2100/= yesterday.
Inawezekana US$ zinarudi kwao kwa kasi kupitia mfumo wa kibenki, pengine kwa sababu ya kinachotokea US na ulaya sasa hivi na kusababisha upungufu wa $ huku kwetu ambao unapelekea haya tunayoshuhudia.
Inawezekana US$ zinarudi kwao kwa kasi kupitia mfumo wa kibenki, pengine kwa sababu ya kinachotokea US na ulaya sasa hivi na kusababisha upungufu wa $ huku kwetu ambao unapelekea haya tunayoshuhudia.
Tatizo la Tanzania ni kwamba uchumi unategemea vitu kutoka nje kuanzia chakula, nguo, magari, vifaa vya ujenzi, mafuta, mbolea,. Vitu vyote hivi vinahitaji dolar na kibaya zaidi ni kwamba uchumi ukipanda na dolar inapanda kwasababu tunatoa vitu vingi sana nje.
Hii article ambayo ilikuwa kwenye BBC News inajibu baadhi ya maswali yetu hapa:
Now there are runs on countries
The sickness afflicting the global financial economy has entered a new and worrying phase.
It started last summer with the closing down of big chunks of the wholesale money and securities markets.
Then we saw a succession of crises at individual banks, as institutional providers of funds withdrew their cash from banks they perceived as weak.
In September the entire banking system was on the brink of total meltdown, because of semi-rational fears that almost no bank was safe from collapse.
And now we're seeing a massive flight of capital out of economies perceived to have been living beyond their means - either because they have a substantial reliance on foreign borrowings, or because they are net importers of good and services, or both.
Commercial lenders to these economies - banks, hedge funds, mutual funds and so on - want their money back now. That's driving down their currencies, pushing up the cost of borrowing for their respective governments and undermining the strength of their respective banking systems.
So they need financial help to tide them over - and with the global economy slowing down, those economies perceived as lacking the resources to cope on their own may need support for months and years.
Queuing up for the intensive care ward are Iceland, Hungary, Pakistan, Ukraine and Belarus, all of which are in discussions about accessing special loans from the International Monetary Fund, the emergency medical service for the global economy.
But there has also been a substantial withdrawal of capital from South Africa, Argentina and - most worrying of all - South Korea.
Let's put this into some kind of context.
The annual economic output of Pakistan, Hungary and Ukraine is something over $100bn each - which is not trivial but does not put them near the top of the rankings in terms of the size of their GDP.
However, the output of Argentina is well over $200bn and that of South Korea is around $900bn. In fact, South Korea is the 13th biggest economy in the world.
If you add together the GDPs of all the economies currently diagnosed with toxic BO by international investors you arrive at a sum that's not far off the economic output of the UK.
And the sums of debt involved are also fairly substantial. Hungary has external debt of more than $100bn, Ukraine has foreign borrowings of $50bn, while Pakistan's dependence on overseas funding is nudging $40bn.
As for South Korea, which hasn't requested formal help from the IMF, its foreign debt is nearer $200bn.
Now you may think this is all about remote countries, with no relevance to you. Well, that would be wrong. We're all connected.
It's been very fashionable for pension funds to invest in developing economies in recent years. If you're saving for a pension, you may own a chunk of South Korea or Argentina.
If you're very unlucky, your pension fund may have belatedly put some of your cash into one of the many hedge funds being royally mullered by the way they borrowed vast sums to invest in some of these emerging economies.
And of course the woes of these economies reduce their ability to purchase from abroad, which acts as a further serious drag on global economic growth.
Also the UK is being buffeted directly by international investors' re-awakened distaste for economies perceived to be too dependent on foreign capital or credit from institutions and companies.
What's happening to South Korea - where its currency, the won, has fallen 29% in the past three months, and shares have fallen well over 20% in a week - is particularly worrying for us.
South Korea is a great manufacturing and exporting nation. Its balance of trade is vastly healthier than the UK's.
But like the UK, South Korea's banks are dependent on wholesale funds that are being withdrawn because of fears that those banks face losses on imprudent deals (not lending to homeowners, as is the case in the UK, but currency hedges with local companies - see my note "Crisis is business as normal").
Of course, our banks - and South Korea's - are being shored up by massive financial support from taxpayers.
But if investors no longer think the UK's banks are at risk of collapse, they then look at our other vulnerabilities - such as public sector borrowing which is rising very sharply because of the costs of the bank rescues, dwindling tax revenues and the need to spend our way through the economic downturn.
They also look at our structural trade deficit and our huge reliance on financial flows generated by a City of London and a financial services industry that's shrinking fast.
As I've pointed out in a tediously repetitive way, the sum of all we've borrowed - the aggregate of corporate, personal and public sector debt - is equivalent to three times our annual economic output.
That's a vast amount of debt to repay - and it's all the harder to do so at a time when our most successful industry, financial services, is in some difficulty and the global economy is slowing down.
If international investors fear our credit isn't what it was and are selling pounds, we should hardly be surprised.
Now there are runs on countries
The sickness afflicting the global financial economy has entered a new and worrying phase.
It started last summer with the closing down of big chunks of the wholesale money and securities markets.
Then we saw a succession of crises at individual banks, as institutional providers of funds withdrew their cash from banks they perceived as weak.
In September the entire banking system was on the brink of total meltdown, because of semi-rational fears that almost no bank was safe from collapse.
And now we're seeing a massive flight of capital out of economies perceived to have been living beyond their means - either because they have a substantial reliance on foreign borrowings, or because they are net importers of good and services, or both.
Commercial lenders to these economies - banks, hedge funds, mutual funds and so on - want their money back now. That's driving down their currencies, pushing up the cost of borrowing for their respective governments and undermining the strength of their respective banking systems.
So they need financial help to tide them over - and with the global economy slowing down, those economies perceived as lacking the resources to cope on their own may need support for months and years.
Queuing up for the intensive care ward are Iceland, Hungary, Pakistan, Ukraine and Belarus, all of which are in discussions about accessing special loans from the International Monetary Fund, the emergency medical service for the global economy.
But there has also been a substantial withdrawal of capital from South Africa, Argentina and - most worrying of all - South Korea.
Let's put this into some kind of context.
The annual economic output of Pakistan, Hungary and Ukraine is something over $100bn each - which is not trivial but does not put them near the top of the rankings in terms of the size of their GDP.
However, the output of Argentina is well over $200bn and that of South Korea is around $900bn. In fact, South Korea is the 13th biggest economy in the world.
If you add together the GDPs of all the economies currently diagnosed with toxic BO by international investors you arrive at a sum that's not far off the economic output of the UK.
And the sums of debt involved are also fairly substantial. Hungary has external debt of more than $100bn, Ukraine has foreign borrowings of $50bn, while Pakistan's dependence on overseas funding is nudging $40bn.
As for South Korea, which hasn't requested formal help from the IMF, its foreign debt is nearer $200bn.
Now you may think this is all about remote countries, with no relevance to you. Well, that would be wrong. We're all connected.
It's been very fashionable for pension funds to invest in developing economies in recent years. If you're saving for a pension, you may own a chunk of South Korea or Argentina.
If you're very unlucky, your pension fund may have belatedly put some of your cash into one of the many hedge funds being royally mullered by the way they borrowed vast sums to invest in some of these emerging economies.
And of course the woes of these economies reduce their ability to purchase from abroad, which acts as a further serious drag on global economic growth.
Also the UK is being buffeted directly by international investors' re-awakened distaste for economies perceived to be too dependent on foreign capital or credit from institutions and companies.
What's happening to South Korea - where its currency, the won, has fallen 29% in the past three months, and shares have fallen well over 20% in a week - is particularly worrying for us.
South Korea is a great manufacturing and exporting nation. Its balance of trade is vastly healthier than the UK's.
But like the UK, South Korea's banks are dependent on wholesale funds that are being withdrawn because of fears that those banks face losses on imprudent deals (not lending to homeowners, as is the case in the UK, but currency hedges with local companies - see my note "Crisis is business as normal").
Of course, our banks - and South Korea's - are being shored up by massive financial support from taxpayers.
But if investors no longer think the UK's banks are at risk of collapse, they then look at our other vulnerabilities - such as public sector borrowing which is rising very sharply because of the costs of the bank rescues, dwindling tax revenues and the need to spend our way through the economic downturn.
They also look at our structural trade deficit and our huge reliance on financial flows generated by a City of London and a financial services industry that's shrinking fast.
As I've pointed out in a tediously repetitive way, the sum of all we've borrowed - the aggregate of corporate, personal and public sector debt - is equivalent to three times our annual economic output.
That's a vast amount of debt to repay - and it's all the harder to do so at a time when our most successful industry, financial services, is in some difficulty and the global economy is slowing down.
If international investors fear our credit isn't what it was and are selling pounds, we should hardly be surprised.
......naomba mjue best Economy doesnt mean strong currency na weak currency is not necessarily uchumi ni mbaya au ni kitu kibaya kwa nchi/uchumi,sometimes its advantage kuwa na weak currency(provided other fundamentals are good),tunajua US wana strong dollar policy kwa miaka mingi lakini latery naona waliacha kwa sababu Chinese alikuwa ana deflate/weaken his currency ili kupata advantage in import/export kitu kilichosababisha negative trade balance to US ndio maana kila siku Congress hawaachi makelele,ila the mother of all factors katika weak/strong currency ni interest rates za Central Banks or Federal reserve(for US),high interest rate means strong currency na low interest rate means weak currency,US federal reserve wanakaa mara 8 kila mwaka to cut/hold/increase the rate na hiyo siku Wall Street,business world na Central banks dunia nzima wanakuwa kama wamesimamisha kila kitu mpaka wajue Federal reserve wameamua nini na hiyo siku mara nyingi utaona currency nyingi duniani zina swing up/down kwa kiasi kikubwa sana,incase of Tanzania kutokana na umaskini wetu thamani ya shilling yetu inategemea sana external factors kuliko internal kwa sasa...ila BOT wanauwezo kidogo wa kuipandisha au kuishusha kwa kutumia interest rate(not so much lakini),ila at the end of the day kama Economy yako ni garbage utaishia kuwa na useless currency maana nobody will give a damn about it,na technically hizo interest rates ni mechanism tuu ya kucontrol markets na kulinda interest za nchi husika...factors zinazo determine currency strength ni nyingi sana na kila moja inaweza ikamove points kadhaa juu au chini ndio maana kila mkilala mkiamka kuna changes ambazo najua wengi zamani tulikuwa hatujui zinatoka wapi,ila mjue dollar inamove ups/down every seconds 24/7 and that means shiling nayo inafuata
Rev. Kishoka
JF-Expert Member
- Mar 7, 2006
- 4,526
- 1,529
Wakati ofisi ya Waziri Mkuu mwaka juzi au jana ilipotumia
USD $400,000.00 kununua magari mawili ambayo jumla yake ni thamani ya USD $100,000.00 tungejiuliza ni vipi tena tunafanya biashara mbuzi?
Bei mpya ya VX Marekani si zaidi ya $40,000.00 ten ahilo lina viluxury kibao. Lakini Tanzania tunapenda kununua kwa flat rate ya $100,000.00!
Tunatumia pesa nyingi kununua na kuagiza vitu, ambacvyo tuna uwezo mkubwa kuvizalisha wenyewe.
Chakula, sabuni, nguo, mafuta ya kupikia, viatu, karatasi, mabati, vigae, komeo, chupa, vioo, matairi, saruji, bia, soda, maji, mabomba ya chuma na plastiki, gesi, na bishaa nyingine, zinawezekana kuzalishwa na kutengenezwa Tanzania hiyo kuimarisha uchumi, nguvu na thamani ya sarafu/fedha yetu.
Leo hii, tunaagiza mara nne ya tunachozalisha, tunategemea vijipesa vya utalii, madini na misaada kuendesha nchi.
Lakini tunajua kuzitumbua kwa kupenda kuagiza vitu, bidhaa za kuliwa na si bidhaa muhimu kuzalisha vile vya kuliwa!
Mkulu wa kaya ni mzururaji mkuu duniani, kwa mwaka anatumia wastani dola za Marekani Milioni saba $7, 000, 000.00 kusafiri na kutalii, lakini si kila safari ni muhimu au ina mafanikio.
Tumelenga kujenga uchumi kwa kutegemea misaada. Bajeti yetu inasema ukwa 40% ya fedha za mapato na matumizi ni kutoka kwa wahisani, je tunalalamika nini shilingi yetu ikiendelea kuchuja?
Ndio mfumo wa uchumi wa Dunia unayumba si kawaida na watu wanalia, lakini sisi kama tungekuwa tunajitosheleza, tusingeweweseka tunavyofanya sasa!
Nikisema ili tuendelee tunahitaji kuing'oa CCM, mtasema aah Mchungaji acha hizo, ukweli ni kuwa CCM hawana mpango hata mmoja wa maana kuinua uchumi, wanachofany awao ni kunyang'anyana kiduchu kilichopo na kumkamua Mtanzania kwa visingizio milioni!
We can build a sound economy if we will all together revolutionize our mentality and attitude towards money. Tanzania will not make any progress until the day we can value money and also value time and equate it into money.
The money we wasted on those 2 Lexus at PM office could have been used to buy a small machine or something productie and nit something that depreciate the moment the signature ink dries!
USD $400,000.00 kununua magari mawili ambayo jumla yake ni thamani ya USD $100,000.00 tungejiuliza ni vipi tena tunafanya biashara mbuzi?
Bei mpya ya VX Marekani si zaidi ya $40,000.00 ten ahilo lina viluxury kibao. Lakini Tanzania tunapenda kununua kwa flat rate ya $100,000.00!
Tunatumia pesa nyingi kununua na kuagiza vitu, ambacvyo tuna uwezo mkubwa kuvizalisha wenyewe.
Chakula, sabuni, nguo, mafuta ya kupikia, viatu, karatasi, mabati, vigae, komeo, chupa, vioo, matairi, saruji, bia, soda, maji, mabomba ya chuma na plastiki, gesi, na bishaa nyingine, zinawezekana kuzalishwa na kutengenezwa Tanzania hiyo kuimarisha uchumi, nguvu na thamani ya sarafu/fedha yetu.
Leo hii, tunaagiza mara nne ya tunachozalisha, tunategemea vijipesa vya utalii, madini na misaada kuendesha nchi.
Lakini tunajua kuzitumbua kwa kupenda kuagiza vitu, bidhaa za kuliwa na si bidhaa muhimu kuzalisha vile vya kuliwa!
Mkulu wa kaya ni mzururaji mkuu duniani, kwa mwaka anatumia wastani dola za Marekani Milioni saba $7, 000, 000.00 kusafiri na kutalii, lakini si kila safari ni muhimu au ina mafanikio.
Tumelenga kujenga uchumi kwa kutegemea misaada. Bajeti yetu inasema ukwa 40% ya fedha za mapato na matumizi ni kutoka kwa wahisani, je tunalalamika nini shilingi yetu ikiendelea kuchuja?
Ndio mfumo wa uchumi wa Dunia unayumba si kawaida na watu wanalia, lakini sisi kama tungekuwa tunajitosheleza, tusingeweweseka tunavyofanya sasa!
Nikisema ili tuendelee tunahitaji kuing'oa CCM, mtasema aah Mchungaji acha hizo, ukweli ni kuwa CCM hawana mpango hata mmoja wa maana kuinua uchumi, wanachofany awao ni kunyang'anyana kiduchu kilichopo na kumkamua Mtanzania kwa visingizio milioni!
We can build a sound economy if we will all together revolutionize our mentality and attitude towards money. Tanzania will not make any progress until the day we can value money and also value time and equate it into money.
The money we wasted on those 2 Lexus at PM office could have been used to buy a small machine or something productie and nit something that depreciate the moment the signature ink dries!
Koba,
Kushuka kwa thamani ya fedha mara nyingi huwa sio tatizo kama unauza vitu vingi nje kuliko unavyonunua. Kwa Tanzania kushuka kwa thamani ya shilingi kuna hasara kubwa sana kuliko faida.
Siku hizi pensions za Wazungu zimetapakaa mpaka kwenye migodi ya madini huko Mara. Sasa wenye pesa wameanza kushutuka na wanazihamisha haraka kuziweka mahali ambapo ni salama. Matokeo yake tusitegemee miradi mingi kama ya kutafuta mafuta au madini kuendelea kuja TZ kwasasa.
Tatizo la sasa sio la TZ tu au shilingi tu na kitu muhimu ni kuanza kujifunza kutumia vitu vyetu ili kusaidia uzalishaji wa ndani na kupunguza balance kubwa kati ya export na import.
Kama kushuka kwa thamani ya shilingi kusingelikuwa kunaongozana na inflation, tatizo lisingelikuwa kubwa zaidi. Ila sasa inflation inapanda na itaendelea kupanda maana vitu
vyote toka nje bei zitaendelea kwenda juu.
Kibaya zaidi kadri Watanzania walioko nje wanavyopoteza kazi, ndivyo pesa zinazotumwa TZ zinavyozidi kupungua na hivyo kuifanya shilingi iendelee kuanguka.
JK na kikapu chake cha misaada sijui itakuwaje.
Kushuka kwa thamani ya fedha mara nyingi huwa sio tatizo kama unauza vitu vingi nje kuliko unavyonunua. Kwa Tanzania kushuka kwa thamani ya shilingi kuna hasara kubwa sana kuliko faida.
Siku hizi pensions za Wazungu zimetapakaa mpaka kwenye migodi ya madini huko Mara. Sasa wenye pesa wameanza kushutuka na wanazihamisha haraka kuziweka mahali ambapo ni salama. Matokeo yake tusitegemee miradi mingi kama ya kutafuta mafuta au madini kuendelea kuja TZ kwasasa.
Tatizo la sasa sio la TZ tu au shilingi tu na kitu muhimu ni kuanza kujifunza kutumia vitu vyetu ili kusaidia uzalishaji wa ndani na kupunguza balance kubwa kati ya export na import.
Kama kushuka kwa thamani ya shilingi kusingelikuwa kunaongozana na inflation, tatizo lisingelikuwa kubwa zaidi. Ila sasa inflation inapanda na itaendelea kupanda maana vitu
vyote toka nje bei zitaendelea kwenda juu.
Kibaya zaidi kadri Watanzania walioko nje wanavyopoteza kazi, ndivyo pesa zinazotumwa TZ zinavyozidi kupungua na hivyo kuifanya shilingi iendelee kuanguka.
JK na kikapu chake cha misaada sijui itakuwaje.
LazyDog
JF-Expert Member
- Apr 10, 2008
- 2,473
- 189
Kenya central bank chief sees shilling stabilising
NAIROBI (Mareeg) - Kenya's foreign exchange market need not panic over the shilling's slide versus the dollar, the central bank governor said on Wednesday, saying he expected the local unit to stabilise in "the next few days".
"The key message is that the market is working, there should be no panic, it is turbulent but it will steady," Governor Njuguna Ndungu told Reuters, adding that the local currency was being pushed by the dollar's global appreciation.
The shilling has weakened over 8.5 percent in October to a near four-year low against the dollar on Wednesday as the effects of the global credit crunch spread to east Africa's biggest economy.
The volatility in the local market was caused by banks trading "to cover their short run positions," Ndungu said.
"(I) see the local unit steady in the next few days. Once the self-fulfilling expectations cool down it will stabilise to its long run mean. The data shows that the currencies in (regional countries) are moving the same direction, once the U.S. banks start lending actively, these effects (should) peter out."
The unit closed trade at 79.45/55 against the dollar compared with 78.10/20 when the market closed on Tuesday.
Ndungu said the Kenyan shilling was actually gaining against the Tanzanian, Ugandan and South African units.
"As much as the shilling is depreciating against the U.S. dollar, many more countries' currencies are also losing value like the shilling," he said.
Last Friday, Ndungu accused some banks of speculation, which had he said had put pressure on the shilling.
"The exchange rate is a topical debate right now and is of significant concern to everybody," he said. "The data shows we are not alone but the speculating banks are, only a few banks are showing this through trading."
The central bank has said it would only intervene to stabilise the shilling in speculative trade. It stepped in on Friday and sold an unspecified amount of dollars, according to some dealers, temporarily cushioning the shilling's slide.
Traditional sources of hard currency such as tourism were hit by a post-election crisis at the start of the year, and the country's import bill has been rising in line with global prices for fuel and other commodities
source africa.reuters
.
NAIROBI (Mareeg) - Kenya's foreign exchange market need not panic over the shilling's slide versus the dollar, the central bank governor said on Wednesday, saying he expected the local unit to stabilise in "the next few days".
"The key message is that the market is working, there should be no panic, it is turbulent but it will steady," Governor Njuguna Ndungu told Reuters, adding that the local currency was being pushed by the dollar's global appreciation.
The shilling has weakened over 8.5 percent in October to a near four-year low against the dollar on Wednesday as the effects of the global credit crunch spread to east Africa's biggest economy.
The volatility in the local market was caused by banks trading "to cover their short run positions," Ndungu said.
"(I) see the local unit steady in the next few days. Once the self-fulfilling expectations cool down it will stabilise to its long run mean. The data shows that the currencies in (regional countries) are moving the same direction, once the U.S. banks start lending actively, these effects (should) peter out."
The unit closed trade at 79.45/55 against the dollar compared with 78.10/20 when the market closed on Tuesday.
Ndungu said the Kenyan shilling was actually gaining against the Tanzanian, Ugandan and South African units.
"As much as the shilling is depreciating against the U.S. dollar, many more countries' currencies are also losing value like the shilling," he said.
Last Friday, Ndungu accused some banks of speculation, which had he said had put pressure on the shilling.
"The exchange rate is a topical debate right now and is of significant concern to everybody," he said. "The data shows we are not alone but the speculating banks are, only a few banks are showing this through trading."
The central bank has said it would only intervene to stabilise the shilling in speculative trade. It stepped in on Friday and sold an unspecified amount of dollars, according to some dealers, temporarily cushioning the shilling's slide.
Traditional sources of hard currency such as tourism were hit by a post-election crisis at the start of the year, and the country's import bill has been rising in line with global prices for fuel and other commodities
source africa.reuters
.
Similar Discussions
-
Ni lini tataanza kuweka mikakati ya kupandisha thamani ya pesa yetu?- Started by Sijali
- Replies: 14
-
Ukosefu wa dola na kupanda kwa mafuta kunaenda kuathiri maisha ya Mtanzania- Started by Mwande na Mndewa
- Replies: 10
-
Shilingi inayoyumba kumaliza vibaya zaidi mwaka 2023 katika miaka 30- Started by mwanamwana
- Replies: 1
-
Kupanda kwa bei za Mafuta, Serikali inadanganya- Started by ACT Wazalendo
- Replies: 51
