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Ksh at its weakest since it floated in 1994
Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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kizee1 wrote:hisah wrote:[quote=SAC Cohen]Shilling recovers 3 bob.
at 92.20... wa! see CBK Comments link coming up shortly
http://www.forexpros.com/currencies/usd-kes
Yap, throwing the kitchen sink and everything at it. The breakdown has been soooo disorderly since March. This is a guerilla war. Rogue trading needs to be tackled in rogue way...
tricky one my friend, this move will severely test the banking system, remember the system is expecting tax outflows next week add reverse repo maturities and well...shud be exciting!!! make sure ur money is in a solvent bank
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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@kizee1 - definitely bank consolidation is on the cards. The small pretenders will be swallowed by the big ones. $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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The CBK has re-inforced itself as the lender of last resort. The banks have been shaken. Sell ur t.bills,bonds & fx for liquidity before U come to us. Excellent, no more hustling on the trading desks. Go out, gather depos & make loans like a bank ought to. Survival will be for the fittest indeed.
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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I dont know how much CBK has been intervening with the KES losing so much ground.
Its interesting how SNB has been using swaps to intervene by pushing the swap points to the left and hence generating progressively more negative implied yields on the CHF, and maybe CBK could borrow a leaf and save depletion of reserves with spot interventions. This of course in addition to other tools like repos, window and CRR.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Cde Monomotapa wrote:The CBK has re-inforced itself as the lender of last resort. The banks have been shaken. Sell ur t.bills,bonds & fx for liquidity before U come to us. Excellent, no more hustling on the trading desks. Go out, gather depos & make loans like a bank ought to. Survival will be for the fittest indeed. In short, short them bank stocks  $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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hisah wrote:Cde Monomotapa wrote:The CBK has re-inforced itself as the lender of last resort. The banks have been shaken. Sell ur t.bills,bonds & fx for liquidity before U come to us. Excellent, no more hustling on the trading desks. Go out, gather depos & make loans like a bank ought to. Survival will be for the fittest indeed. In short, short them bank stocks Especially those that tend to serve their foreign masters more than East Africans
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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Cde Monomotapa wrote:The CBK has re-inforced itself as the lender of last resort. The banks have been shaken. Sell ur t.bills,bonds & fx for liquidity before U come to us. Excellent, no more hustling on the trading desks. Go out, gather depos & make loans like a bank ought to. Survival will be for the fittest indeed. interesting theory Mr KCB your darling banks q2 liquidity was 20.7%, are you still holdin tite to it?
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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You can now track the Shilling vs Dollar Live here http://contrarianinvestingkenya.info
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Is the ngreat guvnor running out of conventional weapons for maintaining the Ksh? Bottomline, he can't force banks to lend in this atmosphere. Sehemu ndio nyumba
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Mainat wrote:Is the ngreat guvnor running out of conventional weapons for maintaining the Ksh?
Bottomline, he can't force banks to lend in this atmosphere. He wants them to stop speculating and gambling and do fundamental business. I am fully behind his Ndecisions.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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The only way to dilute his heavy hand is to invest in a geographically diversified (EAC) bank like KCB Group.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Cde Monomotapa wrote:The only way to dilute his heavy hand is to invest in a geographically diversified (EAC) bank like KCB Group. Kinda like investing in KK over Total Kenya in light of the heavy regulatory environment in Kenya's oil sector.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Cde-perhaps the good guvnor should micromanage the economic environment and get the good creditors while he is at it. That is, bring rains; give Kenya a good political transition with WR and UK enjoying the benefits of being based at the Hague; reduce corruption to name but a few. Hi si China... Sehemu ndio nyumba
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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 go onto www.centralbank.go.ke and read the 3 circulars thereon. Don't rely on the papers. U will realise that the CBK is managing monetary policy by reinforcing itself as the lender of last resort by imposing a steep discount window rate to curb arbitage and also make it clear to banks that b4 they go to the window for liquidity, 1st consider selling ur t.bills, bonds and ESPECIALLY FOREX (held for speculation & gambling). Basically, what he is saying is...do what a bank is created to do and that is, raise deposits & make loans - simple. For that he has my full support.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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If this and more regulations lead to banking sector consolidation, then well and good. 42 banks are just too many in the 1st place.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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Looking at half year results for Citibank half year PAT was up 33%,Interest income,fees and commissions on loans and advances were down.A 79% increase in FOREX trading income saved the day for them.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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cnn wrote: Looking at half year results for Citibank half year PAT was up 33%,Interest income,fees and commissions on loans and advances were down.A 79% increase in FOREX trading income saved the day for them. These r the sort of banks that are being sought by the regulations.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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comrade-you are a proper communist. Bank stock is too expensive for any mergers to take place currently. Have u thought of a move to Cuba/Venuzuela or the great Democratic People's Republic of Korea (aka North Korea)? Sehemu ndio nyumba
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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Cde Monomotapa wrote:cnn wrote: Looking at half year results for Citibank half year PAT was up 33%,Interest income,fees and commissions on loans and advances were down.A 79% increase in FOREX trading income saved the day for them. These r the sort of banks that are being sought by the regulations. i what theyr doing illegal? what came out the last witch hunt? nothing! infact last week ndungu the clown all but named and blamed kenolkobil for the weakenin of the KES! he is surely runnin out of scapegoats
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Ksh at its weakest since it floated in 1994
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