This is what I would explain:<br><br>demand side =&gt; weakening the demand for KES or strong demand for USD (e.g. attempts to lift forex reserves)<br>supply side =&gt; low supply for USD or high supply for KES (e.g. hoarding of USD).<br>
<br>so, to answer you:<br><br><b>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.<br>
<br>an IT exporter of commodities (goods and services) will gain as is paid in USD and wish to exchange to KES at this time.<br></b><br>there are many scenarios that we can&#39;t cover, and I hope these illustrates.<br><br>
Regards,<br><br><br><br><div class="gmail_quote">On Mon, Jun 13, 2011 at 4:26 PM, Kevin Ouma <span dir="ltr">&lt;<a href="mailto:kevin.ouma@gmail.com">kevin.ouma@gmail.com</a>&gt;</span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
Skunks<br><br>I have been watching the trends of the Kenya shilling and its now beginning to worry me now. As of today <br>its at 88 shillings ( which means you will buy it at 90 shillings at the forex bureau) and not relenting in the trend.<br>

<br><br>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.<br><br>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<br>

currencies to the dollar this year.<br><br>How does that affect IT professionals - from cost of bandwidth, to computer equipment to ipads, cellphones, routers name it it will affect us at <br>some point.<br><br><br>Any economists in this forum ?<br>

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