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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Needless 2 say. Shorted Sehemu ndio nyumba
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Mainat wrote:Needless 2 say. Shorted good 
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@cde thinking is always out of tune...atleast he stopped thinking KCB everyday...
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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the deal wrote:@cde thinking is always out of tune...atleast he stopped thinking KCB everyday... :-P
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Banks must be in a tight squeeze. Can't sell t-bills which they converted into htm stock; can't access interbank due to the steep price. And the lender of last resort is playing hardball. Hope we are not heading to some liquidity crunch... Sehemu ndio nyumba
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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There is a solution offered to the banks in that circular I posted if it is read and understood. Looking forward to todays interbank to see its effectivness.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Ok...let me break it down 4 the mortals . The total banking sector deposits are KES.1T. The CRR mandates the banks to park 4.75% of 1T with the CBK at any 1 time. Now, with the latest rules the CBK has allowed the banks to drawdown at most 1.75% off the CRR as long as they close the month at the statutory 4.75%. Thus, simple computation is that 1.75% of KES 1T = 17.5B of available liquidity. Get it?
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Unless you know how they are borrowing from interbank/CBK window per day, that there is fairly useless info. What we for certain is that banks are borrowing from those two markets despite these prices. Plus let see where the interbank is today... Sehemu ndio nyumba
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@mainat a bank drawing down its own CRR costs 0%. So I view this as a 3rd option on top of the Interbank and Discount Window. Thus, if I were a bank i'd approach it from the least cost option 1st; that should ease pressure off the interbank and discount rates somewhat. Let's see.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Mainat wrote:Unless you know how they are borrowing from interbank/CBK window per day, that there is fairly useless info. What we for certain is that banks are borrowing from those two markets despite these prices.
Plus let see where the interbank is today... From the CBK website www.centralbank.go.ke there is a drop down list labelled "Inter-bank Money Market" and on it currently show the activity between the 15th-19th August along with values transacted and what I see is a minimum of 6.7B and a maximum of 10.7B
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Cde Monomotapa wrote:Mainat wrote:Unless you know how they are borrowing from interbank/CBK window per day, that there is fairly useless info. What we for certain is that banks are borrowing from those two markets despite these prices.
Plus let see where the interbank is today... From the CBK website www.centralbank.go.ke there is a drop down list labelled "Inter-bank Money Market" and on it currently show the activity between the 15th-19th August along with values transacted and what I see is a minimum of 6.7B and a maximum of 10.7B Alternatively,download the CBK weekly bulletin http://www.centralbank.g...tin/2011/Aug/260811.pdf and go to page 2 and you will find a lot more detail of interbank market activity. Cheers.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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!! FLAWLESS VICTORY !! COMRADE WINS...
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Dear money printer... Yours truly, ponzi addict... http://tinyurl.com/3fqrgfd$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Cde Monomotapa wrote:!! FLAWLESS VICTORY !! COMRADE WINS... As long as the inflation rate is a double digit & CBR is in the single digit, CBK is fighting a losing battle & the exchange rates will be volatile with or without 'speculators'. Speculators in quotes since they're imaginary i.e. those 4 banks that we wont name...
When treasury flooded the econ with stimulus in 2009/2010, there was no mechanism put up for draining it or how it will be done. @Kizee1 mentioned this last yr severally. @scubidu was equally concerned (too quiet of late, hope he didnt drown in that liquidity).
I have called this a pretext game & nothing has changed... The sideshows previews should stop, we've paid to watch the movie called hike the damn CBR...
Either the movie starts or the audience continue throwing tomatoes (USDKES, job cuts, wage cuts & inflation) on stage.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Why is this lame stream outlet too focussed on this particular conspiracy site... 3rd time & counting. Where there is smoke... http://t.co/u11mae6$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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China mulls internationalising currency THE gradual internationalisation of China's renminbi will see at least 40 percent, or about US$100 billion, of China's trade with Africa being made using the currency unit by 2015, a research study has shown. Currency internationalisation is defined as the widespread use of a currency outside the original country. It is determined by the demand other countries have for that currency. http://www.herald.co.zw/...business&Itemid=133
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Cde Monomotapa wrote:China mulls internationalising currency THE gradual internationalisation of China's renminbi will see at least 40 percent, or about US$100 billion, of China's trade with Africa being made using the currency unit by 2015, a research study has shown. Currency internationalisation is defined as the widespread use of a currency outside the original country. It is determined by the demand other countries have for that currency. http://www.herald.co.zw/...business&Itemid=133
The unbundling of the USD embarks...
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Kenya interbank lending rate plunges NAIROBI, Sept 1 (Reuters) - Kenya's interbank lending rate dropped sharply to 19.2515 percent from 27.7299 percent, central bank data showed on Thursday. http://af.reuters.com/ar...s/idAFL5E7K104V20110901
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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!! FLAWLESS VICTORY !! COMRADE WINS...
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Clearly missed the caveats. USD on its way to Ksh95 last time I sighted it. Sehemu ndio nyumba
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