DAVID NDII exposes RUTO’s lies again as he explains the sudden strengthening of the shilling – Look!

Saturday, March 30, 2024 – President William Ruto’s Economic Advisor David Ndii has come clean on the basic economic principle that he claimed was behind the sudden appreciation of the Kenyan shilling.

Ndii argued that the sudden appreciation of the local currency was mainly due to an external, random variable called 'Sunspots’ and not Ruto’s doing as earlier thought.

Taking into consideration Ndii's argument of sunspots, the sudden appreciation of the local currency was mainly due to external factors that influenced the financial markets.

"I keep asking you which fundamentals were driving the free fall. Seems y’all missed this class," Ndii commented even as he expounded his argument.

Factors such as investors' sentiment, expectations, reactions to non-economic events, or novelty indicators can be classified as sunspots.

Ndii was compelled to issue the explanation after questions were raised on the sudden stability of the shilling against the dollar. 

A section of Kenyans demanded to know the exact fundamentals that made the shilling move that much over a short period and whether it was sustainable.

"Any attempt at explaining the appreciation of the shilling against the green buck in the last month or so should start with the steep depreciation that preceded the current rise. 

"What caused the depreciation? was it a change of fundamentals?" questioned a Kenyan.

The stability of the shilling has mainly been attributed to the oversubscription of Infrastructure bonds issued by the national treasury in January this year.

While the government sought to raise Ksh70 billion from the issuance of infrastructure bonds, the government received Ksh241 billion in offers from investors.

Moreover, tea exportation played a significant role in shilling stability. Reports suggest the sector was now contributing Ksh180 billion. 

The Kenyan DAILY POST