Is there a problem with the Kenya Shilling
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 ?
Its officially at 89.50 today. All fingers pointing at CBK where someone is totally messing with people's lives. ./Ok3ch On Mon, Jun 13, 2011 at 4:26 PM, Kevin Ouma <kevin.ouma@gmail.com> wrote:
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 ?
_______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
That is what we get for following IMF monetary policies, according to other fingers. IMF has brought us experts who charge us to advise us on policies leading to this.
If :- - your sallary is in KES - you store your bling in KES and - you import things in USD Then Smile! You are in deep shit. NB. Some of the things we import we should have started manufacturing here anyway.
I read a very good explanation for this a while back. You can check it out here: http://futurecapitalkenya.blogspot.com/2011/05/benefiting-from-weak-shilling... -- Thanks and Regards, Erick Njenga Nyachwaya, M: +254-725-008-790 <http://www.facebook.com/ErickNjenga> <http://www.twitter.com/ErickNjenga>
David; I have struggled with this problem since the 2008 post election violence (PEV). My colleagues and I (three people) have been on the Governors case, but it seems there's a misguided policy at the CBK. He perpetually ignores our concerns, I even protested his reappointment. I think the CBK are looking at expanding the economy from the wrong perspective. Most of the people that sit in our government (policy makers) have businesses that trade in neighboring countries whose income is in DOLLARS, and I think over the last 5 years, the policy has been to make sure the shilling is as uncompetitive as possible, regardless of the imports that leak our economy. We are a net importer - meaning our balance of payments is perpetually negative, rather what they call net loser in a layman's language. We loose our wealth. Think of oil, cars, fertilizers, seeds, food, etc, they are bought from the world market in DOLLARS! We are now a net importer of all these products from neighboring countries (potatoes, onions etc come from Tanzania! Nkt!). With how many bags of tea will we be able to afford a barrel of oil? Or a rim for your car? There are people at the CBK that are directly or indirectly getting immersed in this scam, and its driving the poverty to crazy levels never seen before since independence. Visit the countryside away from Nairobi and give me the best scenario, i'll pay you. Disappointed. On 6/13/11, Erick Njenga <eriknjenga@gmail.com> wrote:
I read a very good explanation for this a while back. You can check it out here: http://futurecapitalkenya.blogspot.com/2011/05/benefiting-from-weak-shilling...
is it true that there are pirates sitting on $$$$$ next door ...? Maybe we should start a pirate rehab ....and charge them or help them convert it ...we could even build them hospitals and yes police stations ....in their motherland On Mon, Jun 13, 2011 at 5:50 PM, Peter Osotsi <peter.osotsi@gmail.com>wrote:
David;
I have struggled with this problem since the 2008 post election violence (PEV). My colleagues and I (three people) have been on the Governors case, but it seems there's a misguided policy at the CBK. He perpetually ignores our concerns, I even protested his reappointment. I think the CBK are looking at expanding the economy from the wrong perspective.
Most of the people that sit in our government (policy makers) have businesses that trade in neighboring countries whose income is in DOLLARS, and I think over the last 5 years, the policy has been to make sure the shilling is as uncompetitive as possible, regardless of the imports that leak our economy. We are a net importer - meaning our balance of payments is perpetually negative, rather what they call net loser in a layman's language. We loose our wealth.
Think of oil, cars, fertilizers, seeds, food, etc, they are bought from the world market in DOLLARS! We are now a net importer of all these products from neighboring countries (potatoes, onions etc come from Tanzania! Nkt!). With how many bags of tea will we be able to afford a barrel of oil? Or a rim for your car?
There are people at the CBK that are directly or indirectly getting immersed in this scam, and its driving the poverty to crazy levels never seen before since independence. Visit the countryside away from Nairobi and give me the best scenario, i'll pay you.
Disappointed.
On 6/13/11, Erick Njenga <eriknjenga@gmail.com> wrote:
I read a very good explanation for this a while back. You can check it out here:
http://futurecapitalkenya.blogspot.com/2011/05/benefiting-from-weak-shilling... _______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
Inflation is up ..driven by oil and food (imports ) . Unreliable weather means this could continue . CBK is bound to intervene though as each successive level creates a new inflation level if they dont fuel prices will go crazy and so will wheat ,and other import foods . This is probably short term ( A correction ). Remmeber you budget has a large borrowing component also . ( 1.1 T with most borrowed ) On Mon, Jun 13, 2011 at 4:26 PM, Kevin Ouma <kevin.ouma@gmail.com> wrote:
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 ?
_______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
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, On Mon, Jun 13, 2011 at 4:26 PM, Kevin Ouma <kevin.ouma@gmail.com> wrote:
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 ?
_______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
We are sooo screwed !!!! [?][?][?][?] ========== When I started working - 3,500 could fill the monthly shopping cart. Siku hizi, 10k doesnt even cut it [?][?]
:( On Mon, Jun 13, 2011 at 7:00 PM, ndungu stephen <ndungustephen@gmail.com>wrote:
We are sooo screwed !!!! [?][?][?][?]
==========
When I started working - 3,500 could fill the monthly shopping cart.
Siku hizi, 10k doesnt even cut it [?][?]
_______________________________________________ Skunkworks mailing list Skunkworks@lists.my.co.ke http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
-- Solomon Kariri, Software Developer, Cell: +254736 729 450 Skype: solomonkariri
participants (10)
-
Dennis Kioko -
Erick Njenga -
Frank Maina -
James Nzomo -
Kevin Ouma -
ndungu stephen -
Okechukwu -
Peter Osotsi -
solomon kariri -
Tuma Barua