Kenya would have got a new finance minister, maybe an interim one. But Kenya’s Shilling reacted adversely against the new development. Country’s currency has dropped to 104.05 to 20 per dollar on Thursday. This is the lowest level in almost two years. Many attributes including traders the reasons for the erosion of currency’s fall to political uncertainty emanating from charging the former finance minister with financial misconduct. The shilling eroded 0.8 percent ever since the charges were announced.
As reported by our portal, President Uhuru Kenyatta appointed Labor Minister Ukur Yatani as acting finance minister a day after incumbent Henry Rotich was charged with corruption. There is a fear among the traders and industry that the vacuum at the finance ministry could lead to further loss of value of the currency. Banks and clients are holding long dollar positions, an indication that the Shilling could weaken further. Therefore, they are seeking long term forward cover to insulate the currency from violent fluctuations
