RAILA ODINGA‘s AZIMIO says RUTO is propping the Kenyan Shilling against the dollar to fool Kenyans that the economy is stable

 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.


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