The Central Bank of Kenya is Losing its Grip on the Kenya Shilling Due to Over-regulation, Say Kenyan Bankers

The Central Bank of Kenya is apparently struggling to keep the Kenya Shilling from losing value against the dollar according to Kenyan bankers. According to a recent report on a Kenyan daily, insider anonymous sources from Kenyan banks say that CBK has been clamping down on bankers that put in a higher bid than what is offered by the CBK. SEE ALSO: Kenya Ranked Top 5 in the World on Global Cryptocurrency Activity, Reveals Chainalysis Report The regulatory over-reach however might not hold long as they go against the undeniable forces of demand and supply. In a worst-case scenario, a dollar black market might emerge, if it has not done so already. Currency Crisis The Central Bank of Kenya is losing grip on the Kenya shilling pic.twitter.com/cjNfPcUkRt — Kioneki (@pesa_africa) September 24, 2020 The report paints a grim picture of a CBK that will not allow bankers to post a high price on an inter-bank platform restricting them from selling dollars at a high price in an effort to stop price distortion. As a result, banks cannot sell publicly to other banks thereby creating an artificial shortage that drives prices even higher. As of this writing, the rates are as follows: CBK rate – KES 108.5 / $ Inter-bank – KES 113 / $ The report points to a possible KES 115 / $ as the actual value which is not being reported in order to keep the value at the KES 108 CBK rate. The above may not be surprising considering that the following: Kenya imports 3x more than it exports Diminishing portfolio investments from hedge funds in the bonds and stocks market IMF has claimed the Kenya shilling is being managed and should be allowed to depreciate Demand for Bitcoin and other cryptocurrencies in Kenya is on the rise Sign Up to attend: http://bit.ly/BitKECatapult-25 Follow us on Twitter for latest posts and updates Open a Paxful Bitcoin Trading Account today!

The Central Bank of Kenya is Losing its Grip on the Kenya Shilling Due to Over-regulation, Say Kenyan Bankers

The Central Bank of Kenya is apparently struggling to keep the Kenya Shilling from losing value against the dollar according to Kenyan bankers.

According to a recent report on a Kenyan daily, insider anonymous sources from Kenyan banks say that CBK has been clamping down on bankers that put in a higher bid than what is offered by the CBK.

SEE ALSOKenya Ranked Top 5 in the World on Global Cryptocurrency Activity, Reveals Chainalysis Report

The regulatory over-reach however might not hold long as they go against the undeniable forces of demand and supply.

In a worst-case scenario, a dollar black market might emerge, if it has not done so already.

The report paints a grim picture of a CBK that will not allow bankers to post a high price on an inter-bank platform restricting them from selling dollars at a high price in an effort to stop price distortion.

As a result, banks cannot sell publicly to other banks thereby creating an artificial shortage that drives prices even higher.

As of this writing, the rates are as follows:

  • CBK rate – KES 108.5 / $
  • Inter-bank – KES 113 / $

The report points to a possible KES 115 / $ as the actual value which is not being reported in order to keep the value at the KES 108 CBK rate.

The above may not be surprising considering that the following:

  • Kenya imports 3x more than it exports
  • Diminishing portfolio investments from hedge funds in the bonds and stocks market
  • IMF has claimed the Kenya shilling is being managed and should be allowed to depreciate
  • Demand for Bitcoin and other cryptocurrencies in Kenya is on the rise
Sign Up to attend: http://bit.ly/BitKECatapult-25

Follow us on Twitter for latest posts and updates

Open a Paxful Bitcoin Trading Account today!