Take 4: Bank of Ghana cuts its rate (cbr equivalent) to 25.5% from 26%. Inflation still at a head spinning 15.8%. Cedi is a little stable but still skidding nonetheless.
http://www.bloomberg.com...k-first-time-since-2011
Considering the fate of pegs and caps is always the same i.e. they both fall by the wayside eventually, the KE interest rate caps are going to have a short shelf life.

In addition, looked at through the global 5000 year prism, interest rates are set to rise - caps or no caps.

If we get crazy inflation next year and KES weakens excessively vs USD, the caps are going to look ridiculous at some point.

Take 5: Libya is still smouldering 5 years after the uprising. One hell of a devaluation awaits the dinar.

Inflation is North of 20%.

https://t.co/mwK9jiw6fD

Can't catch a break now, can they?

True, but international influence/interference is always there either explicitly or implicitly. This can be effected through international shylocks (think IMF and World Bank arm twisting ways), international banks(think Mozambique's tuna bond via Credit Suisse and VTB), international economic hit men/political mercenaries etc.

The result is the same irrespective of the tactic of choice. Libya and other Arab nations bore the brunt of schemes that got unearthed by the commoner.

Current dinar slide is a funding/revenue squeeze just like other commodity/oil dependent economies are experiencing.

Which banks arranged KE's euro bond? Both IMF and WB have made themselves comfy in KE in the last three years or so. Same script.

India's govt pulled a bone-headed move by demonetizing 86% of the nation's currency all in the guise of fighting corruption while the real aim is to increase the tax net. They have unwittingly given the masses a rope by which the establishment will be hanged.

India was poised to be the best performing of the larger economies in 2017 @circa 7% just ahead of China. In light of the recent developments, it will be hard to register anything above 3%. As if that is not bad enough, the policy whose aim was to increase govt revenue will end up drastically reducing it.

People and businesses with capital have the following choices;

1. Go underground completely to the extent of shunning the new 'compliant' currency notes and resort to barter trade. This will boost the so called black economy that demonetization aimed to eradicate.

2. Look for the nearest exit out of India causing high demand for fx.

3. A combination of the two both of which would be the cause and/or result of hyperinflation.

How the PM thought the policy was inspired is beyond me.
http://www.economist.com...y?fsrc=scn/tw/te/bl/ed/

In a twisted way, the govt has effectively cannibalised businesses in India through an indirect bail-in of their cash and cash reserves. Funny world this one where emerging economies are emulating or radicalizing failed policies effected by stagnating/collapsing advanced markets.