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.
The Kenyan DAILY POST
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