In most African countries, borrowing in USD (or even borrowing in LCY at very high rates) & selling in LCY is a disaster. As a country (Kenya) or region (EAC) or continent (Africa), we should dollars our economies. We need Fiscal discipline that is imposed on us and perhaps a Monetary Policy that we have little control over.
Some may look at it as neocolonialism but I see it as 'discipline' that is imposed on us OR we might just end up like Venezuela or Argentina (under the Peso).
Kenya issued a USD Eurobond. The KES got an artificial boost and when the euphoria ran out, the bill has come due. A 6% USD bond is now 16% when re-calculated in LCY.
I need help researching which country had the cash-in cash-out policy. My poor googling skills aren't helping.
I can't recall which country did it but they had moved to a cash accounting system for a little while i.e. books were balanced DAILY. If the Treasury had $10mn then it wrote cheques for $10mn. Everyone queued up for payment which also meant increased scrutiny for payments.
Therefore, Things of Desire would line up with a genuine supplier e.g. KenolKobil to be paid. All the payments would be listed and can be challenged by those in the queue.
Shady firms or deals would be shunted aside pending verification or sent to the back of the queue. Cash in, cash out. What happened was that inflation dropped like a rock as there was no printing of money. The economy did suffer a slow-down but I looked at it positively that there was genuine growth not inflationary filed growth.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett