Strong Kenya shilling hurting exports to Tanzania, Uganda

Strong Kenya shilling hurting exports to Tanzania, Uganda

asvptx said:
STRONG currency to the dollar is a sign of a booming economy. Weakening currencies on the other hand indicates a deteriorating economy.. and they know this. Only that these fools will always want to argue and downplay gains made by Kenya.

Lakini uzuri, zao ni kelele za chura tuu
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Zao ni blah blah tu. Meanwhile the exchange rate of Tzshs to the dollar is unbelievable, just like monopoly money.
 
joto la jiwe said:
Not praying, it is principle of economics and rules that govern international trade
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Lets then see the Tanzanian central bank manipulating the Tzsh to get even more weaker so more companies can invest in Tanzania.
 
asvptx said:
Hahahaha because of a STRONG Kenyan shilling? Check yourself into a mental institution
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Don't force me to believe that you suffered from birth asphyxia during time of your birth. Tell me what is happening when the country has strong currency Vs countries with weak currencies as far as trade is concerned between them?. Take an example of USA And China and Japan. This is high voltage discussion we expect discussants to think twice before emptying their mouths
 
pingli-nywee said:
This article you put up doesn't state anywhere that earnings from exports declined while remittances from abroad rose. The remmitances rose above all other foreign exchange earners. Infact it states that the rise in remittances from abroad was a good thing for KES. Hahaha! [emoji1] Yours must be a mental illness or something.
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You dont know economics
 
asvptx said:
STRONG currency to the dollar is a sign of a booming economy. Weakening currencies on the other hand indicates a deteriorating economy.. and they know this. Only that these fools will always want to argue and downplay gains made by Kenya.

Lakini uzuri, zao ni kelele za chura tuu
Click to expand...
China and Japan depreciate their currencies yearly in order to increase their export, like wise Tanzania and the strategy is working very well, Tanzania exports are rising while that of Kenya are decreasing
 
watu wa pesa ya madafuuu kelele nyingiiii ilhali wanajua pesa yao haina dhamani kabisaa...
 
joto la jiwe said:
China and Japan depreciate their currencies yearly in order to increase their export, like wise Tanzania and the strategy is working very well, Tanzania exports are rising while that of Kenya are decreasing
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Tanzania is an importing country. I'm very sure your trade balance is on the negative. You cannot compare exports by China, Japan and the likes to your own exports

Having weaker currency will only increase this negative balance because your purchasing power reduces. Things become expensive for you to buy (in simple terms)
 
asvptx said:
Tanzania is an importing country. I'm very sure your trade balance is on the negative. You cannot compare exports by China, Japan and the likes to your own exports

Having weaker currency will only increase this negative balance because your purchasing power reduces. Things become expensive for you to buy (in simple terms)
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Trade balance for TZ is positive (Exports more than imports)
http://www.theeastafrican.co.ke/bus...trade-surplus/2560-3992184-awif73z/index.html
 
Mkikuyu- Akili timamu said:
Strong Kenya shilling hurting exports to Tanzania, Uganda
FRIDAY JUNE 15 2018
      
US and Kenyan currency. The Kenyan shilling has gained against the dollar. FILE PHOTO | NMG
By BUSINESS DAILY
More by this Author
A stronger shilling this year is making Kenyan exports to regional markets more expensive as peer currencies slide against the dollar.
The Kenyan shilling has gained two per cent against the dollar in the year to date in contrast with currencies of key trading partners, potentially hurting Kenyan exports by making them more expensive.
Domestic currencies of key trading partners have all depreciated to the greenback.
The Ugandan shilling has edged down by 3.6 per cent to the dollar since January, the Tanzanian shilling by 1.8 per cent, the Egyptian pound by 0.7 per cent and the Rwanda franc by 0.9 per cent.
A stronger shilling to the dollar relative to the currencies of trade partners hurt Kenya, given that the dollar is the preferred medium of exchange in international trade.
Diaspora inflows
Economists at Commercial Bank of Africa (CBA) say that while the Kenyan shilling remains well supported by diaspora dollar inflows and the robust Central Bank of Kenya forex reserves, the Ugandan shilling has come under pressure from high demand for dollars by the private sector and the government, while the Tanzanian currency is being hit by low inflows from the key mining sector.
The later sector has been paralysed by government audit of historical operations of international mining companies.
“The Kenya shilling may still outperform our forecast in June given the increased inflows amid fairly subdued demand…the Tanzania shilling is expected to maintain its gradual depreciation towards 2300 levels as crucial hard currency flows from mining sector remain subdued,” said CBA in its monthly economic report for June.
Uganda is Kenya’s largest market in Africa.
http://www.theeastafrican.co.ke/bus...nia-and-Uganda/2560-4613740-rv2a3a/index.html
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kenya shilling inagain nguvu kwa inflow ya pesa za wakenya waliopo nje ya nchi na sera za bank kuu ya kenya kuhusu currency exchange so what is point hapo ni kwamba pesa ya kenya sio kwamba inapanda au kugain kwa sababu ya uzalishaji wa bidhaa za kwa kuexport hapana so ni mbaya kwa kenya kwani inafanya maisha yawe magumu zaidi kwa exporters na importers even hata manufacturing sectors nikija kwetu Tanzania pesa yetu inashuka kwa sababu ya low inflow in mining sectors YESS kwa sababu ya mambo ya audit na ubadilishaji wa sera za madini na ndio sector inyoongoza kuboost gdp na uchumi kwa ujumla n pia nakutoa ajira!! soo whats is your real point here!!! una uelewa na uchumi or kwa vile mkenya wewe!![emoji408] [emoji409] [emoji432]
 
asvptx said:
Tanzania is an importing country. I'm very sure your trade balance is on the negative. You cannot compare exports by China, Japan and the likes to your own exports

Having weaker currency will only increase this negative balance because your purchasing power reduces. Things become expensive for you to buy (in simple terms)
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Hahahahahaha, I will ask Mkikuyu Akilitamu to help by sending you a link which shows that Tanzania now is exporting more than it import, for the first time Tanzania has recorded positive balance of trade.

All you should know as a principle is that weak currencies support exports, while strong currencies support imports, this is the principle of business you can't deny it, and it applies across the globe.
 
asvptx said:
STRONG currency to the dollar is a sign of a booming economy. Weakening currencies on the other hand indicates a deteriorating economy.. and they know this. Only that these fools will always want to argue and downplay gains made by Kenya.

Lakini uzuri, zao ni kelele za chura tuu
Click to expand...

That is not economics, under ceteris paribas, strong currency should be triggered by excess export. if you have strong currency with unjustifiable balance of trade, then the economic adversity is around the corner. It's a bubble which will puuu at any point in time. This's why for smarter economies like China, they normally call for cool. Devaluing their currency.
 
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