Tz vs Kenya

Purple

Moderator
Staff member
#12
Monetary policies/ vulue is not about how big economy is. You will have to wait for 1000 years for 1$ to hit ksh.1000.
No you’re wrong. In the purest form of definition, a country’s currency is tied closely to the economic strength of that country-due to supply and demand forces.

Although GDP is more commonly used to determine the size of a country’s economy, the strength of a currency is a close correlate.

Given the fact that kenya’s economy is not vastly superior to her neighbors, it means that the Ksh is grossly overvalued. Why the CBK decides to manipulate the currency is everyone’s guess. The fact remains a strong currency hurts Kenya’s trade competitiveness by making exports expensive.
 

Purple

Moderator
Staff member
#14
The IMF wants our shilling devalued so western countries can take our coffee for a song?
Why should they take your coffee? Wacha conspiracy theories. Thankfully these shenanigans can’t go on forever. One day Kenya will wake up only to find themselves importing from TZ or UG. Our neighbors are the biggest beneficiaries of this currency overvaluation.
 
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