Wednesday, February 14,2024 - Revered human rights crusader, Boniface Mwangi, has portrayed his incompetence on social media after he explained why the KenyaN Shilling is strengthening against the U.S. dollar.
On
Wednesday, the Kenyan Shilling was trading at 153 units against the U.S. dollar.
This
represents a 1.9 percent increase in value in under a day, a significant uptick
after it traded 156 units on Tuesday from the highs of 160 units.
Reacting
to the strengthening of the Kenya Shilling on Tuesday, Mwangi claimed the
reason is because the Chinese have closed their shops since they are
celebrating New Year.
Mwangi
explained that because of the New Year, Kenyans have stopped buying from the
Chinese so the flow of dollars outside the country has reduced thereby making
Kenyan Shilling strong.
“This is what has happened with China's New Year holiday that has just started.
"Kenya is not buying anything from China and therefore not spending any USD on the outside.
"This means, we are having an increase of the dollar in our reserve,
which can only mean that the Kenyan Shilling gets Valuable in that period that
the dollar doesn't leave the country,” Mwangi stated.
What
Mwangi didn’t know is that the shilling is strengthening because of the
injection of new funding from the International Monetary Fund (IMF).
According
to economic analyst and expert Ndiritu Muriithi, this infusion of capital has
provided much-needed stability to the shilling.
The IMF’s
support ensures that Kenya has sufficient resources to meet its financial
obligations, including the repayment of existing debts.
The Kenyan DAILY POST
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