mkonomtupu wrote:[quote=jawz1]
CBK to blame for shilling woes, says Cheserem
Mr Cheserem rapped the Governor for his remark when the crisis began, that the CBK will not intervene to tame the depreciation.
“That was a very unfortunate statement. It encouraged speculators. The Central Bank should not say whether or not it will intervene,” he told Mr Keynan’s committee. “There are two rules at Central Bank. Rule number one is, don’t tell the market your intentions; rule number two is, refer to rule number one.”
End quote.
Enough said!!!
Link:
Cheserem opinion on CBK Micah Cheserem presided over the lost decade in the 1990's(when govt believed jua kali sector was going to make kenya a newly industrialized country by 2020) here is a man who believed in high interest rates 40%, a darling of the IMF whose policies ruined so many local businesses, killed our industrial and manufacturing base and forced kenyans into diaspora. When he says MPC should be made of CBK economists (read his buddy Terry Ryan)he is just in dreamland thinking he is cleaning up goldenberg cash. Prof Nugu oh sorry Ndungu should not listen to these two guys they belong to the past this is the future
http://www.businessdaily.../-/v0y9bez/-/index.html[/quote]
Mkonomtupu are you sure that Cheserem was the governor when the rates were at 40% or even during goldenberg? I have my doubts regarding that.
FYI Cheserem did a rather good job of controlling inflation during his term as CBK governor. He resisted a lot of government interference hence the reason Kibaki keeps on apppointing him to head this or that body. He also tried to reign in creative accounting by banks which seems to be taking root . See link
http://findarticles.com/...27/is_n215/ai_n28676582/