The closing of the overnight window is a reaction to the fx issues of recent days. I think CBK has reaction is ott and this will actually lead to more banks trying their had at speculation. While tis good to get more Kenyan banks involved in providing fx, the reason the 4 banks were invited in the 1st place is because they are also leaders in the market reflecting the fact that clientele require fx. With all due respect to Equity, this is not an area it has comparative advantage in. The 2nd reason i think its an overreaction is that, speculation is not the only cause of the current Ksh weakness. Oil prices have been high, we’ve been importing maize. More broadly, we have a structural issue because we now importing even more than before i.e. BoP problem.
Inflation is rising because of a lack of economic policy co-ordination. Thanks Uhuru