wazua Wed, Apr 8, 2026
Welcome Guest Search | Active Topics | Log In

21 Pages«<1314151617>»
USD/KES $ at 95
Options
Previous Topic · Next Topic
hisah
#141 Posted : Friday, July 17, 2015 12:47:35 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
KulaRaha wrote:
And now, here come to press statements that mean nothing. I thought this new guy was smart?


CBK Press Release explain the muscular USD
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  |
VituVingiSana
#142 Posted : Friday, July 17, 2015 1:33:20 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,364
Location: Nairobi
hisah wrote:
KulaRaha wrote:
And now, here come to press statements that mean nothing. I thought this new guy was smart?


CBK Press Release explain the muscular USD
Laughing out loudly Laughing out loudly Laughing out loudly These sort of press statements rarely mean anything. The latest MPC statement was all about the positives & how all is well until the last paragraph! Then came the +1.33% increase in KBRR.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
mkonomtupu
#143 Posted : Friday, July 17, 2015 1:34:07 PM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
hisah wrote:
KulaRaha wrote:
And now, here come to press statements that mean nothing. I thought this new guy was smart?


CBK Press Release explain the muscular USD


I thought the first rule of central banking is never to let the market price in your actions. This is the equivalent of a wife saying we need to talk. I hope CBK realizes the market can smell fear(hot air) soon the speculators will start testing them.

I would have gone with what Sirma was doing allow the speculators to accumulate speculative trades then burn them
Back to top
  |
kyt
#144 Posted : Saturday, July 18, 2015 12:00:42 PM
Rank: Elder

Joined: 11/7/2007
Posts: 2,182
What would happen if the CB's let the market play it self out?
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
Back to top
  |
Gathige
#145 Posted : Saturday, July 18, 2015 12:41:03 PM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
kyt wrote:
What would happen if the CB's let the market play it self out?



I guess the exchange rate would stabilize at the real rate.

The hign demand for USD is real. I went to a forex bureau last week and the cashier informed me she had an order for One million dollars from a client. I tried to negotiate a rate and she informed me she was making only Kshs 20 per 100 dollars, so their margins are quite low but volumes high, hence the forex market is quite lucrative.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Back to top
  |
kaifastus
#146 Posted : Saturday, July 18, 2015 1:05:13 PM
Rank: Member

Joined: 8/17/2011
Posts: 207
Location: humu humu
kyt wrote:
What would happen if the CB's let the market play it self out?


If word got out there that the cbk is not intervening,speculators, businessmen and banks would bid the dollar up. in the short term this could lead to serious price distortions that could harm the economy.
Those advocating for no action from cbk dont know what they are saying.

Back to top
  |
hisah
#147 Posted : Sunday, July 19, 2015 2:55:36 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
kaifastus wrote:
kyt wrote:
What would happen if the CB's let the market play it self out?


If word got out there that the cbk is not intervening,speculators, businessmen and banks would bid the dollar up. in the short term this could lead to serious price distortions that could harm the economy.
Those advocating for no action from cbk dont know what they are saying.


I don't think anyone has stated the CB should do nothing. Rather the old methods need to change to manage the muscular USD. Flight to the USD will continue as long as euroland deposit rates are negative. The pound too is experiencing more deposit upscale coz of the same. So you have a dump euro deposits pile into USD and pound deposits scenario (Cyprus & Greece crazies not helping euro confidence). Until this scenario changes all currencies will continue to devalue vs the USD. Therefore weak economies that have bad macros will obviously take a hard knock from the USD strength. This is the puzzle that CBs and Treasury depts need to solve, but with creative methods. Old methods won't work!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  | | Edit by user: Sunday, July 19, 2015 3:09 AM | Reason: Not specified
hisah
#148 Posted : Tuesday, July 21, 2015 2:03:49 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Rotich sees rising imports hurting shilling
Quote:
Treasury secretary Henry Rotich sees the gap between exports and imports widening in the next two years, further piling pressure on the shilling.


Loud and clear. Good luck KES bulls. Your legs have been cut!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  |
VituVingiSana
#149 Posted : Tuesday, July 21, 2015 2:46:28 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,364
Location: Nairobi
hisah wrote:
Rotich sees rising imports hurting shilling
Quote:
Treasury secretary Henry Rotich sees the gap between exports and imports widening in the next two years, further piling pressure on the shilling.


Loud and clear. Good luck KES bulls. Your legs have been cut!

Let's HOPE that GoK stops using CBK to support the KES but leave interest rates at a level that allows local manufacturers and exporters to survive.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
murchr
#150 Posted : Tuesday, July 21, 2015 3:45:40 AM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
hisah wrote:
Rotich sees rising imports hurting shilling
Quote:
Treasury secretary Henry Rotich sees the gap between exports and imports widening in the next two years, further piling pressure on the shilling.


Loud and clear. Good luck KES bulls. Your legs have been cut!


The writing has been on the wall for a long long time, he should quit talking and start acting.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Back to top
  |
21 Pages«<1314151617>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.