You wonder how the shilling slipped from 100 to 115. It goes back to 2018. At the time the shilling traded between 100-103. A very tight range. Too tight, in fact that the IMF declared it a government controlled currency, as opposed to a floating currency that is determined by pure market factors .Why is this important? Because Kenya was looking for loans from the IMF, which have to be paid back in dollars. On top of all Chinese loans.
For every shilling depreciation, external debt rises by ksh 45b. So Moving from ksh 100-115, means external debt rose by ksh 500b.
So IMF accused Kenya of hiding the true value of the shilling, to avoid rising debt and reflect the current debt country was in. As a result, Kenya entered an agreement with the IMF, to stop controlling the value of the shilling. As a condition to borrow loans.
IMF and World Bank are well known economic saboteurs tangu siku za Structural Adjustment Programs. Can you imagine taking a 150 billion loan that leads to a 500 billion liability. Imperialists are working overtime to finish negroes. Those conditions were put in place so that the debt obligation goes up by 800 billion in 2022.
In other words, would we be better off hiding the true value of the shilling?
What would be the downfall of that controlled policy in an economic sense?
A country that leaves the currency to market determination and the monetary authority exercises independent monetary policy aimed at achieving objectives such as price stability is classified as operating a ‘floating currency’.
Low IQ bonobos lazima mpangwe. The reason for anti China propaganda loans by the West is so that you get back to the firm grip of the West - of course through their multilateral institutions like the IMF and World Bank.
Kibaki alikua ametutoa kwa IMF slavery sasa Uhuru ameturudisha.
Only low IQ bonobos running on Congo jungle 1.0 would leave their monetary policy/exchange rate to the ‘market’.
Blame japs WW2,Korean war '54 that led to inflations, US and IMF efforts that floated the currency from its fixed exch rate in the 80’s leading to subsequent devaluations,introduction of whole new currencies,the asia finacial crisis of 97 that dipped the won to half its value and has also been in decline since 2021, primarily because of rising oil prices and growing inflation.
On the bright side tho,SK has entered the cultural new age in dramatic fashion through the spread of its pop culture and is quickly becoming a popular tourist destination. It’s also quickly becoming one of the most prominent tech and information hubs in the world . Being the fourth-largest economy by GDP in Asia,a strong economy is one of the factors that can influence the strength of a currency.
Another brukhengeh in the house , Congo Jungle Software is the original software , the current software africans have got installed during colonialism and slavery , naitwa Mental Slavery V2022 ,
Don’t blame the IMF, blame yourself. IMF is a lender of last resort and if you elect and dance for leaders hell bent to destroy the economy through corruption and bad decisions, you will need that lender.