This is what I would explain:
demand side => weakening the demand for KES or strong demand for USD (e.g. attempts to lift forex reserves)
supply side => low supply for USD or high supply for KES (e.g. hoarding of USD).
so, to answer you:
an IT importer of commodities will thus will need more KES for buy good in USD - it means that you will eat your profit margin if you do not adjust your prices. It means that you will decrease your revenue if you increase your prices.
an IT exporter of commodities (goods and services) will gain as is paid in USD and wish to exchange to KES at this time.
there are many scenarios that we can't cover, and I hope these illustrates.
Regards,
Skunks
I have been watching the trends of the Kenya shilling and its now beginning to worry me now. As of today
its at 88 shillings ( which means you will buy it at 90 shillings at the forex bureau) and not relenting in the trend.
What alarmed me most was when a forex dealer gave me a heads up that its likely to hit the 100 mark in a few weeks.
Is there a problem in the economy that we are not aware of. I was reading a global report indicating that it is one of the worst performing
currencies to the dollar this year.
How does that affect IT professionals - from cost of bandwidth, to computer equipment to ipads, cellphones, routers name it it will affect us at
some point.
Any economists in this forum ?
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