And the weakening shilling, currently at 140 to the dollar, continues to pile pressure on the cost of living in the country, with commodity prices expected to hit a record high because Kenya is an importing nation. While either the Shilling or the dollar could fall even further, with many expecting them to reach 150 shillings to the dollar in the coming months, they've also asked businesses to tighten their belts as the situation could worsen in the next 24 months.
Faisal Ahmed breaks it down: over the last 12 months, the shilling hashed about 10 percent of its value against the dollar, pushing the inflation rate in the country to a high of 9.2 percent in February. Kenya, being a net importer of products, relies on foreign currencies to make purchases, and this puts extra pressure on the Central Bank Reserves sector. Experts say that the situation will get worse before getting better. The US dollar is a global currency for trading purposes, so you're going to demand more for the US dollar all right, and the dollar is always going to be demanded.
Consumers The industry has had an issue with accessing enough dollars to procure the product. This is given the fact that 30 percent of all the dollars needed in this country or they are talking about are in the petroleum industry. If it continues like that, I agree with you that it would cause us issues and probably even affect the pricing that we have in terms of petroleum products. The dollar strengthened dramatically in 2022 as a result of the US
Content created and supplied by: AllTrends (via Opera
News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform
See More
COMMENTS