Just30:
by borrowing to support the currency
Caping inflation means that inflation cannot expose them until national revenue can no longer support debt repayment.

then they will turn to borrow new to pay old debts
Debt substitution program.

I remember I once talked about this.....That will happen soon

rvp2018:
Now you're about to admit the problem. The problem is historical - the way I see - it the lack of confidence in CEDIS - and you gov is doing such a bad job.

Kenya strong Kshs against deteriorating regional currencies (UG & TZ) - is making our manufacturer goods expensive (although when it come to quality -they cannot hack it - Kenya goods are still seen as of better quality) - but we export lot more services than even manufactured goods - so we are fine - and still run East Africa trade.

But because we still import a lot of capital goods from likes of India, Saudi Arabia(Oil), China, Japan (cars, machinery, equipment) - and because we value currency STABILITY - our central bank does a clean job defending Kshs in an open market.

Dollarization in Ghana is historically related to trade and not goverment issues persay . Ghanaian buisness men loves the hard currency due to their import focus buisness. You don't buy goods with cedis , You buy with hard currency . Ghana of 30 million population importing goods worth over 13 billions dollars shows Ghana import than kenya per head. so the more Ghana import, the more the demand on dollars.......You don't talk about economy without checking on the constrain.

Quality is a subjective word , Every individual can claim it, the fact remain , TZ export more foods than you guys despite not having efficient harbour like that of mombasa which is regarded as the best port in east Africa....Uganda as well is not doing bad ....

Your goverment is only window dressing your currency , what you are doing is not much diffrence to what happens to Turkey currency. it is your debt stock that will suffer it and it will in the end back fire . social development goals will failed to materialized , when debt to GDP servicing ratio become very high , Your own economy will crumble for failing to grow above 6 percent which is considered as the moderate growth for developing countries.

rvp2018:
1) It's not structural because you have positive Trade balance. You export more than your import. You have trade surplus. You also have 8B dollars from remittances. So on face value - you're doing well - but CEDIS isn't.

2) I think the problem is more confidence thing - you demonetization failed because Ghanian have really bad memories of Cedis during hyper-inflation - so nobody trust Ghanian Cedis.

3) Kenya has been free-floating kshs since 93, we have no forex controls and CBK don't borrow any money. They buy and sell forexs like any market player.

4) The strength of Kshs is not a mystery - it's because Kenya esp Nairobi attract a lot of forex - because we are financial capital - we have many NGOS, UN and MNCS bring lots of forex - we have tourist bring forex - we have lot of capital flight from region (Tanzania, Somali, etc ) ending in Nairobi. Heck we have people as far as UK, US, Nigeria coming to buy kenya real estates.

5) We are now mostly debt re-financing. We borrow 6B dollars - about 3B dollars externally - and 3B dollar internally. And we repay 6B dollars - about 3B dollars internally and 3b dollars externally. So forex from debt is NOT NOT responsible for strength of Kshs - we pay back as much dollars as we borrow.

1) it is structural, a few years of running a trade surplus cannot change a 50 years only problem.
Give it 10 more years of running a surplus and everything balances off.

2) demonetization worked perfectly well such that there are more electronically held money than in circulation

3) Kenya kshs has never floated freely since kenya became an independent nation.

4) it is not a mystery at all
Because everyone knows that you economic figures are massaged
a capped inflation, borrowing to peg the currency and entering into a debt circle.

5) do you know what happens before an economy has to turn to borrowing to reservice debt ?
this happens, the country's revenue can no longer service it debt because it is highly stretched
the country is not exporting much for the central bank to have enough flexibility.

This signals sends investors away such that only aid agencies want to stay and wait for the next crisis.

Just30:
if those fundamentals are so strong, why do you keep borrowing to support the pegged currency.


if your currency was freely floating,
a 15 billion import to 5 billion export will lead to massive depreciation and hyperinflation.

This is one of the reasons why no one wants to come to Kenya and open any serious business for production.

Good question

gallivant:


What are you talking about? The picture is not in Lagos, why would you say it is?

Lol this is not working...rvp is waiting for me

samorobo:


Good question

we want to see development photos from the zoo...too much yapping man...post the pictures already...

mtisTheQubit:

so you think vaxx an rvp are hating each other...

No they are not...They are learning about eachother country and this kind of conversation reveals alot of secrecy in your economy which I am most interested in..As most of what they are saying I have implied oftentimes.

vaxx2:
I am still waiting for what kazikazi is proud of.....


maybe the safari pack and the electric train

Am giving u gov offices,but u can't respond
This is headquarters of central bank in Tz
Bank of Tanzania towers,Dar es salaam

samorobo:


You handle them while I go join in on the conversation to make them feel insecure..lol..

Noted

samorobo:


No they are not...They are learning about eachother country and this kind of conversation reveals alot of secrecy in your economy which I am most interested in..As most of what they are saying I have implied oftentimes.

our country is doing greate ...you dont need to be told...just look at nai bae an observe the progress...

mtisTheQubit:

Asking a photo of so called development is a sin now?

It is a distraction at this moment..This moment is so crucial to the existence of this thread

Kazikazi:
You surprise me.You are the one who asked for gov hospitals and offices etc. I posted head office of ports authority in Tz,u were shocked.You then decided to say skyscrapers are not human development! Why did u ask for gov offices?
Anyway,let me help u.Let digest Tanzania's ports authority headquarters in Dar es salaam.
They built the tower to host authority offices and the rest of space is rented out. In this tower,there is conference hall which is used by anyone who pays,there are other office spaces rented by clearing and forwarding agents,even a normal guy like u can rent an office there.So,the authority is making a profit while at same time they have a very posh offices to use.No other port in Africa has such posh offices.The Kenyans in Mombasa want to do similar project. They are copying us.
So,a skyscraper like this brings money! The railway too brings money.In Tz,a skyscraper can do a return on investment for about 8 to 10 years.Our port authority did what we call innovative thinking!.Other Africans are welcome to imitate that.

I am not going to waste my time on the meaningless joke . the kind of infrastructure happen in tema harbour don't even work in mombasa the eastern Africa biggest port.. .


https://www.youtube.com/watch?v=0ViNaO1bhSE



This is Ghana port office again....



let's talk on another thing. you guys don't have hospital , you don't even have ports ....what do you want talk about again. we can do airport



Do you know what 2.3 billion dollar worth of investment will bring ?

mtisTheQubit:

but still ahead of the zoo in almost everything...Thats reminds me, baba came here to earn more about em cows..

That's it na so that we can be eating more beef meat baba is busy traveling to different countries like Russia, China and London for international business to make our economy stronger while your government is busy borrowing money to pay more debts. shameless ZOO

mtisTheQubit:

we want to see development photos from the zoo...too much yapping man...post the pictures already...

Lol go try this on problemkid...he had time for things like this...Me I am off to visit rvp

vaxx2:
That is exactly what they are doing ?

then they are one step away from zimbabwe

because debt substitution simply means your debt is not going down anytime soon

And whiles there is not much expansion going on in your economy,
growth slows down.

gallivant:


He is in London hiding from his responsibilities. A little honesty will not kill you.

He's in London doing international business while you're here fooling yourself buhari don't give a fvck about this shitty continent. They contribute nothing to our economy

mtisTheQubit:

our country is doing greate ...you dont need to be told...just look at nai bae an observe the progress...

Distractions again...start by asking yourself how many kilometres of tarred road those the zoo city have? And how many it gets anually..

Vaxxs discussion his eye opening....your secret opaque economy is becoming transparent for viewing

samorobo:


It is a distraction at this moment..This moment is so crucial to the existence of this thread

Really.. sincerely i see nothing in the conversation.am not hating. we Kenyans we know what we have (proud of it) an Ghananians know what they have..i think they also proud of it...

You niggas cant even compare with Kenya with all that oil...what if we got oil an other stuff...few countries can compare with Kenya in Africa..that is a FACT....

Just30:
then they are one step away from zimbabwe

because debt substitution simply means your debt is not going down anytime soon

And whiles there is not much expansion going on in your economy,
growth slows down.

Honestly you are right...I give them five years max and will swim into the condition Zim is swimming out from....

Such valueless currency will render the country useless

samorobo:


You guys should stop distractine..rvp ,just30 and vaxx they are all waiting for me......I mentioned the name then, go look for it..lazy boy

They're ass lickersi Vaxx and just30 they're doing the good job by exposing them again while these little bombastic fools called GALLIPANT and shma are busy covering up by changing the topic foolish Kiberans

mtisTheQubit:

Really.. sincerely i see nothing in the conversation.am not hating. we Kenyans we know what we have (proud of it) an Ghananians know what they have..i think they also proud of it...

You niggas cant even compare with Kenya with all that oil...what if we got oil an other stuff...few countries can compare with Kenya in Africa..that is a FACT....

This conversation is over...vaxx is waiting for me

samorobo:



Distractions again...start by asking yourself how many kilometres of tarred road those the zoo city have? And how many it gets anually..

Vaxxs discussion his eye opening....your secret opaque economy is becoming transparent for viewing

Look dude you cant hide hunger ....just look at Nigerians dying to to visit Kenya...there is a reason for that...an please its not an adventure to die while trying to visit foreign countries..its a struggle..

Problemkid1:
They're ass lickersi Vaxx and just30 they're doing the good job by exposing them again while these little bombastic fools called GALLIPANT and shma are busy covering up by changing the topic foolish Kiberans

They want to distract you and I ....pls don't be fooled

Shma:
But we all know the reality on ground you know.

Meanwhile this will help enlighten you a lil bit

DOWNLOAD:
Country
Human Development Index
Population 2019
Seychelles 0.797 97,739
Mauritius 0.79 1,269,668
Algeria 0.754 43,053,054
Tunisia 0.735 11,694,719
Botswana 0.717 2,303,697
Libya 0.706 6,777,452
Gabon 0.702 2,172,579
South Africa 0.699 58,558,270
Egypt 0.696 100,388,073
Morocco 0.667 36,471,769
Namibia 0.647 2,494,530
Ghana 0.592 30,417,856
Equatorial Guinea 0.591 1,355,986
Kenya 0.59 52,573,973
Sao Tome And Principe 0.589 215,056
Zambia 0.588 17,861,030
Angola 0.581 31,825,295
Cameroon 0.556 25,876,380
Zimbabwe 0.535

Kenya 0.5 Nigeria 0.5 nothing special.

Kenya export $5B/imports $18B.
Starvation is a norm Kenya. Your President suddenly added lots of weight, why?
He was starving before he became president.
Kenyans smell of poverty, they look broke all the time, except the few elites who are oppurtuned to steal govt money.

samorobo:


This conversation is over...vaxx is waiting for me

conversation is not over till the fat lady sings..

rvp2018:
How can a currency that is annually on a free-fall be called stable and predictable. Don't believe your own propaganda. You have negative feedback loop that is killing the CEDIS.

It is predictable and stable because it is controled the market forces
so everyone can forecast and know when it will appreciate and when it will depreciate.

They only reason why trade surplus hasnt kicked in to the benefit of the Cedis is because
a lot of other legacy issues have to be resolved first

mtisTheQubit:

Really.. sincerely i see nothing in the conversation.am not hating. we Kenyans we know what we have (proud of it) an Ghananians know what they have..i think they also proud of it...

You niggas cant even compare with Kenya with all that oil...what if we got oil an other stuff...few countries can compare with Kenya in Africa..that is a FACT....

Why the fvck should we compare our almighty country with your zoo first clear the poverty In your zoo before you can talk to the giant

Yeah few countries can compare to Kenya which is Somalia and Sudan

mtisTheQubit:

Look dude you cant hide hunger ....just look at Nigerians dying to to visit Kenya...there is a reason for that...an please its not an adventure to die while trying to visit foreign countries..its a struggle..

Sharaaaap dying to visit which Kenya that complete shitthol for all countries in the world it is Kenya funny kiberan

Historical because Cedis has bad history as far exchanging with dollar. So importers, foreign companies and even regular Ghanians do not trust it. Just admit.

You import more of what? In Kenya we import mostly machinery, oil, equipment, cars - not Chinese trinkets - because we manufacture a lot of stuff internally.

TZ and Uganda export very bad quality food - of very little value to us - most Kenyans long abandoned maize, beans, cassava - and such for highly yielding horticultural, fruits, nuts, and dairy.

None of what you're predicting has ever happened to kenya or is about to happen. Turkey was sunk by the US of A. Our debt servicing ratio has always hovered around 30%.

In short Kenya macro-economics have always been STRONG.

vaxx2:
Dollarization in Ghana is historically related to trade and not goverment issues persay . Ghanaian buisness men loves the hard currency due to their import focus buisness. You don't buy goods with cedis , You buy with hard currency . Ghana of 30 million population importing goods worth over 13 billions dollars shows Ghana import than kenya per head. so the more Ghana import, the more the demand on dollars.......You don't talk about economy without checking on the constrain.

Quality is a subjective word , Every individual can claim it, the fact remain , TZ export more foods than you guys despite not having efficient harbour like that of mombasa which is regarded as the best port in east Africa....Uganda as well is not doing bad ....

Your goverment is only window dressing your currency , what you are doing is not much diffrence to what happens to Turkey currency. it is your debt stock that will suffer it and it will in the end back fire . social development goals will failed to materialized , when debt to GDP servicing ratio become very high , Your own economy will crumble for failing to grow above 6 percent which is considered as the moderate growth for developing countries.

pacretus:
Kenya 0.5 Nigeria 0.5 nothing special.

Kenya export $5B/imports $18B.
Starvation is a norm Kenya. Your President suddenly added lots of weight, why?
He was starving before he became president.
Kenyans smell of poverty, they look broke all the time, except the few elites who are oppurtuned to steal govt money.

Really...the world would disagree with that...

samorobo:


They want to distract you and I ....pls don't be fooled

Don't mind the fools they thought we're dumb like them foolish starving skeleton of the world

Kazikazi:
You surprise me.You are the one who asked for gov hospitals and offices etc. I posted head office of ports authority in Tz,u were shocked.You then decided to say skyscrapers are not human development! Why did u ask for gov offices?
Anyway,let me help u.Let digest Tanzania's ports authority headquarters in Dar es salaam.
They built the tower to host authority offices and the rest of space is rented out. In this tower,there is conference hall which is used by anyone who pays,there are other office spaces rented by clearing and forwarding agents,even a normal guy like u can rent an office there.So,the authority is making a profit while at same time they have a very posh offices to use.No other port in Africa has such posh offices.The Kenyans in Mombasa want to do similar project. They are copying us.
So,a skyscraper like this brings money! The railway too brings money.In Tz,a skyscraper can do a return on investment for about 8 to 10 years.Our port authority did what we call innovative thinking!.Other Africans are welcome to imitate that.

Reality check

Autocrats are more likely to build giant skyscrapers—even when their countries don’t need them

A new working paper from researchers at the University of Oslo found that autocracies build more new skyscrapers than democracies, and the buildings they construct tend to be more excessive and wasteful than those built in democratic countries. A harsh autocracy builds 1.6 more skyscrapers each year on average than a high-scoring democracy. The paper also found that autocracies are more likely to build skyscrapers where there is little clear economic benefit. For instance, in democratic countries, skyscrapers are usually built only in urban settings, while autocratic governments will sometimes build skyscrapers in rural parts of their countries. Skyscrapers in autocratic governments also tend to have a high percentage of “vanity meters,” which is the distance from the highest occupied floor to the top of the building, often bolstered by constructing spires.


There is something different about why different governments build such towers. “In democracies, you get more skyscrapers as urbanization increases or as income increases,” Knutsen says. “But you don't find this in autocracies. They basically build skyscrapers no matter what.”