Rank: Member Joined: 2/20/2015 Posts: 468 Location: Nairobi
|
Angelica _ann wrote:Ericsson wrote:MuchNo wrote:D32 wrote:
We saw the the recent news about buying oil in KES, apparently it will ease the demand for USD.
Thanks @D32. This one sentence in your response is poignant. Three months later it emerges that the deal was never for Kenya to buy oil in KES so the pressure on the USD exchange was only being deferred (at best). What's worse is that there are fears that GOK is trying to renegotiate terms on the imminently due repayments on the short-term Saudi and Emirati loans (we entered a 9-month deal to buy directly from them - in USD - at a fixed price, the first payment being due in 6-months, which is about to lapse). Surely this means that we need to brace ourselves for a disastrous future? To me, when GOK starts negotiating for a variation in terms it means that there will either be a default in the payments, or a bum deal that will be passed on to us, the citizens of this our dear country. Will that new demand for USD not trigger inflation of the kind only seen in the Moi-error (sic)? They could have left the previous arrangement to continue as it was and not interfere How they agreed that this would work still baffles me. Unless there are huge personal interests in the deal. A 'prudent' person would have been buying dollars for the last 6 months. like where did the GoK think dollars will appear magically from? OR what does the 4-month USD import cover dollars for? You'd think by now we would have accumulated a 10-month USD import cover.
|