The dollar crisis in Kenya could be attributed to the country’s high dependence on imports according to Kenya Bankers Association Chairman John Gachora.
The dollar crisis in Kenya could be attributed to the country’s high dependence on imports according to Kenya Bankers Association Chairman John Gachora.
The costs of goods globally have risen drastically making the imports threefold costlier resulting in higher demand for dollars. Gachora said that the current dollar situation should be termed as a demand-supply gap in the FX market.
The upcoming August 9 election, he added could also be a contributing factor in the dollar crisis as normally investors are hesitant to make any commitments before elections. Additionally, dollar rates in the US also are rising. Over and above, the Russia Ukraine war has also created some aversion to emerging market investments.
Also read
https://trendsnafrica.com/rate-hikes-in-the-developed-world-impact-kenyas-market-outlook/
