Ericsson wrote:
Won't help in ending the weakness of the kenya shilling.
The weakening will end when we increase our exports and foreign earnings.
How now? If the devaluation from 100-150 didn't help boost exports what will?
I have argued on this forum on kenya's economy having a structural problem. It didn't respond that much to 2021 rate cut stimulus(which is what the monk was trying to achieve) and now did't respond to a competitive devaluation.
Quote:โThe point we want to make is that we have been losing competitiveness. Our level of exports to GDP has been declining consistently, we are not getting as much tourism receipts as our neighbouring countries, and our FDI has also declined,โ said CBK governor Kamau Thugge on Wednesday.
So we are now to the 2011 playbook which is to catch the portfolio inflows by hiking rates to match the Fed. US Tbond yields are coming down. Our lazy fund managers have refused to take advantage of low equity prices so let's see if foreign buyers will awaken them
Quote:n their August 2023 review, Morgan Stanley Capital International (MSCI) noted that the market dividend yield stood at 8.63 percent, significantly outperforming the peer average group of stock exchanges in the MSCI Frontier Markets Index, which had a yield of 4.28 percent.
I expect the market will be reverting to the mean(to get to the frontier market yield) so doubling of market which is much better returns than what you will get from the T-bills. Same reason that in 2011 the market ignored T-bills at 20%
Market turnover yesterday was quite robust