NDINDI NYORO reveals why the shilling is losing its value against the dollar despite RUTO’s spirited efforts to strengthen it

Saturday, April 27, 2024 - National Assembly Budget Committee chairperson Ndindi Nyoro has explained the recent fluctuations witnessed in the exchange rate.

According to the Kiharu MP, the recent fluctuations were mostly influenced by local factors rather than external factors.

In particular, he detailed that there were instances of dollar hoarding as those with foreign currency waiting for a more favorable exchange rate of their liking.

A higher exchange rate translates to more money if they are changed to the local currency.

However, he opined that there would be no drastic movements in the exchange rate owing to the monetary policies that have been adopted by the government.

"We have seen stability in the exchange rate market. This has been driven by the monetary policy that Kenya has adopted. We believe that the stability will continue to persist.”

"The oscillations in the exchange rate market are driven by local sentiments such as the hoarding of the dollar. The fluctuations we have seen in recent days are driven by sentiments," he stated.

For the last week, the dollar has been exchanged between Ksh130 and Ksh134.

As of April 26, the dollar was trading at Ksh133.1.

Notably, financial experts had projected that the shilling would weaken after making major gains against the dollar.

This was attributed to the increasing demand for imports.


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