It is an open secret that shilling depreciated to all time low in history. Trading at more than 97 to the dollar is absolutely worrying in the Kenyan economy. The shilling has weakened against major currencies as a result of runaway inflation, excessive import among other reasons.
As the CBK grapples to strengthen the shilling, it is left to the observers that it is almost beyond its control as it the Kenyan currency has literally defied fiscal and monetary measures to put it under check.
With this sad reality for the Kenyan economy, it’s important that CBK in conjunction with the Ministry of Finance to convene a stakeholders’ conference that will enlighten them on how ways that will ease the pressure on shilling. The same platform will be used in inviting economist around the world to offer meaningful ideas on how to strengthen a weak currency.
For instance, the policy makers would want to know why a major economic powerhouse like China hoards its currency, Yuan.China shies away from releasing its currency globally and that in a way can be attributed to the stability of its currency.
Another issue has to do with the implication of the black-market in Kenyan economy. The fact that millions of dollars are exchanged in black-market is a clear indication that crucial foreign exchange data is not captured by CBK for decision making purposes.
If the conference is covened, experts will be in a position to educate the importers and exporters on ways that might go along way in stabilizing the shilling. In the same forum, laymen might share ideas that can be aptly applied to yield the same results.
James Mwangi Kanyi.
Nairobi.
No comments:
Post a Comment