1. Central Govt fixes the rates to encourage exports. Cases of Chinese Yuan and Vietnemese Dong.
2. Demand and Supply of the currency. Cases of USD, Euro.
3. WB & IMF influence on devaluation.
4. Too much borrowings create stress on local currency.
Case ya Kes na Tzs ni historical.
Kabla ya vita vya Uganda Tzs ilikuwa na nguvu sana almost equal to USD.
Baada ya vita vya Kagera, foreign reserve pale BOT ilikuwa empty.
Ukienda WB na IMF wakaja na SAP ambayo moja ya condition ni currency devaluation.
Tzs ikaanza kushuka thamani, viwanda havikuwa vinazalisha, no exports, more imports. Tzs ikawa inazidi kuanguka.
Kenya ilikuwa tayari industrialized, fedha yake ikawa stable. Tz tukawa tunaenda zaidi kenya kuchukua mzigo.
Mpaka sasa Kes ina nguvu kuliko Tzs.
Uchumi wa nchi haina uhusiano wowote na thamani ya fedha.