Friday, February 23, 2024 - Azimio One Kenya coalition has accused the Kenya Kwanza Alliance administration of propping up the Kenyan Shilling to fool Kenyans that the economy is stable.
Addressing a press conference on Thursday, Azimio coalition
principals led by former Vice President Kalonzo Musyoka said President William
Ruto’s government was propping the Shilling using superficial means.
“The shilling has lost its value against the US dollar.
"The shilling lost its value against Tanzania and Uganda shilling.
"Recently announced an artificial situation in stabilizing the Kenya shilling against the dollar.
"Today the exchange rate is still fluctuating at around Kenya shillings 150 to the US Dollar.
"Kenyans must never be excited about these artificial, superficial
and unsustainable moves by Kenya Kwanza to stabilize the dollar against the
Kenya Shilling,” continued the statement.
Propping up its currency reserves, in this case of Kenya
allegedly propping up the dollar, means that a Central Bank uses its foreign
currency reserves to buy government bonds in the open market without involving
any actual currency exchange.
The Bank can then also create an artificial demand for the
currency.
Another means of propping up local currency against foreign exchange is by the government fixing a nation’s currency to a specific value against another currency or several other currencies.
"This affects the domestic
currency value in the international market.
The Kenyan DAILY POST
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