Tough times have been recorded for the government of Kenyan and it's citizens following the weakening of a Kenyan shilling over American dollar. Central Bank of Kenya governor Patrick Njoroge said that as on 25th February one dollar is exchanged at sh. 126.90 which is the highest value ever.
Lead market analyst of FX pesa EGM , Rufas Kamau said that the weakening of the shilling meant that thier will be more strain in buying households. He said that this is brought by disparity in forex rates and raising of interest rates by the US Federal Reserve System.
"The black market and bank rates differ greatly from the central bank's official rates. This happens when dollars are scarce, causing corporations to hoard them. If you sell your dollars in Kenya, you will have to buy them again at a higher price when you need them," he stated.
Kamau said this weakening favours exportation as goods will be cheaper to the rest of the world while importation is ore expensive as Kenyans will be forced to pay more for importation of goods.
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