Kenyan Shilling Depreciates
The Kenyan shilling is seemingly losing against US Dollar
The Kenyan shilling has been recording a depreciating value accounting to at least 25 percent loss since 2020. The shilling has dropped from Ksh 99 to Ksh.124 for a Dollar. The inflation has taken a coarse route, with a 9.0 percent rise. Inflation is expected to recede amid cheaper oil imports and the dampening effects of domestic rate heights.
Survey has it that the loss of Kenyan Shilling against the dollar could be a course of the high cost of living. This is due to the increase of the country`s balance of trade by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by making it more expensive.
Currency depreciation can be caused by economic fundamentals, interest rates differentials, political instability or risk aversion among investors.
Kenyans will now dig deeper in their pockets to afford a livelyhood.