I usually like to move cash to my Kenyan account only when exchange rates are favourable, such as now. In a few weeks the STP has risen by about 10bob. Those dealing in forex...where do you expect it to plateau...and what is behind all this?

@Mwafrika31

...is in large part being determined by the economic convulsion in Europe. EU & England...

Thanks for ur views on the why...makes sense with dollar and stp but not the euro which is being dumped worldwide but strangely gaining against ksh. Nway, do you have views on the value at which ksh is expected to level vis-a-vis usd n stp? That is, why stock now, if i can stock say mid August at 130 for 1 STP for instance? I am imagining the red and green tension shud weaken it further so weakest in first wk of august.. ama?

@ slykat,

You do raise some good points. Speculation is always risky. You may choose to wait for august in the hopes that the shilling will slide further, but world events are unpredictable. Considering that many diaspora Kenyans have also noted shilling the losing value, it is likely that they will start purchasing vast amounts thereby slowing its slide, as you know as summer ends in the West and the tourist season starts which also may increase demand for ksh. Historical analysis also shows that the shilling is unlikely to lose value to really drastically.

As for the euro, for foreign traders, its preffered to the shilling as its more convertible. Hence while the euro may lose against the dollar, but still gain against the ksh. Hedge your bets as a good trader, buy some shillings now and monitor the rate in the coming weeks. But dont fail to buy anything pinning all your hopes on ksh weakening further.