Kenyan Shilling

[mpoipoi]

Kenya Shilling May Gain Amid Speculation Bank Will Sell Dollars

Kenya's shilling may strengthen this week amid speculation that the central bank will sell U.S. dollars to support the local currency, said traders including Bernard Matimu, chief dealer at NIC Bank Ltd.

Ecobank Kenya Ltd., Equity Bank Ltd., African Banking Corporation Ltd. and NIC participated in the survey.

[Asante]

The Kenya Central Bank should do more to support the local currency. The Kenyan shilling has been sliding due to unscrupolous traders who want to make a profit over the misery of ordiunary Kenyans;.

[Kifimbo]

Do you think that the falling Kenyan shilling will make our economy more competitive globally? Our exports would be cheaper compared to other foreign goods in the global marketplace and many foreigners would flock to Kenya to take advantage of cheaper travel here.

[Borte]

I do not think the falling value of the shilling will in any way help our economy in Kenya. Our country imports most of our needs like oil and other food stuffs and we need dollars to buy those things, we can not pay them in shillings.

[Darweshi]

The only people who are happy in Kenya right now are those rich people who had savings in dollars. They watched as their dollar holdings increased substantially during the past year and are even hoarding more, exacerbating the situation of our poor shilling.

[Joseph]

There are various competing theories that have been put forward to advance the impact of a strengthened currency first on a country's economy and its citizens and secondly on a global trading level.

I think the Chinese government is the perfect case study here. It has managed to maintain a tight fist on its currency control and regulation - that it's no longer open secret that its currency value is way higher than what it trades for.

Given the fact that its domestic production is on full gear coupled with a favorable currency, China now is one of the leading and undoubtedly enviable trading power on the global market.

If you need a reverse case study look no further than Zimbabwe. Poor monetary and fiscal policies coupled with a failed domestic economy and...(what a sorry state)

My point is that the strength of the Kenyan shilling and its impact must be delicately balanced with our own domestic productions goals and policies while having a keen eye on the global trading scenario in order for us to have any good positive impact on our economy and its citizens...leaving all factors constant.

I hope our policy holders and key players will learn a lesson from the on going U.S.A wall street melt down.