Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Winners and loosers in this fiasco excerpt from Reuters. Quote:
WINNERS:
* Tourism industry. Experts say a weaker shilling could raise the appeal of the country as a holiday destination. With pounds, dollars and euros buying more shillings, tourists' budgets could go further as they enjoy the country's game reserves, white beaches and mountains.
* Agricultural exporters. Growers could pocket more from their exports of tea, coffee and horticulture.
* Banks. First quarter results for banks showed that banks' earnings got a boost from growth in income from foreign exchange trading, on the back of the volatility in the rate.
LOSERS:
* Policymakers. Markets have looked on in consternation as officials have struggled to find the appropriate policy response to the weakening of the currency and the accompanying inflation.
* Financial markets. Overseas investors are likely to hesitate to put their money into an economy whose currency has weakened sharply. Before this year, foreign investors had piled into Kenya's debt, stock and property markets, pulled in partly by the stability and liquidity of the currency.
* Consumers. A battered shilling has sent the cost of energy and food soaring, causing widespread anger in a country where the gap between the rich and the poor is one of the biggest in the world.
* Government. Yields have shot upwards, meaning the government's cost of borrowing from the market is rising.
(Reporting by Duncan Miriri)
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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