Being big enough to admit my limited knowledge, and at the risk of being ridiculed, I'd like to ask the following questions. And excuse me for not sifting through the lengthy thread abt the Kenya shilling at its lowest since 1994...
1 - Why is the shilling weak? I gather demand for forex by importers can affect the rate upwards (i.e. weaken the shilling) but at the same time, healthy exports should help cushion this if trade is favourable.
2 - Does Private forex trading have ANYTHING to do with this? I'm no economist - perhaps a freakonimist
but is not private forex trading - where the govt and regulators have no visibility on this trade, have anything to do with the strength of the shilling? I'm thinking of similar scenarios like hoarding goods and the effect on prices. Might there be no MEGA traders holding so much forex (and gaining by getting more Kshs?). Any correlation?
3 - When there are global "pressures", it seems to affect East Africa currencies somewhat evenly, but of late the effects are mixed. kshs and ushs seem to be taking more beatings. Any reason why.
OK, I allow some derisive remarks but any answers that are sober and on topic will be greatly appreciated.
Gracias