more.....

from the president of Ghana office

""On Monday, 18th November, 2019, I paid a day's official visit to Abu Dhabi, the capital of the United Arab Emirates, at the invitation of Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of the Emirate of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces.

Our discussions centered on deepening the ties of co-operation and the bonds of friendship that exist between our two nations. To this end, five (5) co-operation agreements were signed"".

TayserMahri:


I dont need stories vaxx. Just tell me the following.

Is there a statistical body or tourist body or immigration body that captures visitors within the territory of Ghana?

1. If yes, what are its figures? Dont tell me they dont capture all data because that is the same for every country, no statistical body captures all data.

2. If no, then it is well understood why your country relies on foreign agents to estimate the number of visitors to Ghana. Mastercard would be far worse in capturing more accurate visitor numbers than any agency within the country.

Regulated visitors are captured by immigration control unit and their country embassey....... but their payment pattern which illustrate their financial life system are not captured only card system give us a fear idea ......

tylann:


you were right
the guy is indeed a NIGHA

Then Obama is what ? kenyame ( kenya-america)...

how are you austine1212. i saw you down there?

Three auto firms to unveil locally assembled cars in Ghana early 2020

The three automobile companies that have signed agreements with the government to establish vehicle assembly plants in the country say they are on track to put their first vehicles on Ghana’s roads by next year.While VW is expected to deliver the first car by the first quarter of next year, Toyota is looking at August and Nissan before 2020 ends.

All three companies have acquired lands for setting up the plants, while working towards meeting all the regulatory requirements.

Nissan

The General Manager of Nissan West Africa, Mr Imad Antoine Ghorayeb, told the Daily Graphic that the company had already established its West Africa Regional Office and begun training sales and after-sales technicians in the sub-region ahead of production.

He said by the end of 2019, it would employ administrative staff to run the office.

“The kick-off of Nissan operations in Ghana should be around the first quarter of 2020, but you should be driving the first Nissan cars before the end of 2020,” he said.

He said the plant would be sited at the Tema Industrial Enclave, adding that the Tema area was chosen because of its proximity to the port to make it easy for transportation.

The Japanese multinational automobile manufacturer, Nissan, signed a memorandum of understanding (MoU) with Ghana in November last year to establish an assembly plant in Ghana.

Nissan, which leads new car sales in Ghana with a 32 per cent market share, plans to make Ghana its sales hub in West Africa.

Toyota

Toyota Ghana’s Semi Knocked-Down (SKD) Project Coordinator, Mr Collins Donkor, told the Daily Graphic that the company was in the process of acquiring a building which would be modified to suit the needs of the plant.

While declining to give the location of the site, Mr Donkor said Toyota had considered the option of putting up the facility from scratch, but given the time limitation, it decided to acquire a property to modify it to meet the needs of the facility, which was expected to put Ghana’s auto manufacturing development policy in full gear.

Toyota Tsusho Corporation, on August 28, 2019, signed an MoU with the government of Ghana for the establishment of a Toyota and Suzuki assembly plant in Ghana on the day the company bought almost a five per cent stake in Suzuki.

VW

The General Manager of Universal Motors, Mr Kevin Ackerberg, said the company had gone far with its preparations, with the only hold up being the registration of the company.

He said the authorised distributors of VW vehicles had a facility with a capacity of about 1,000 to 2,000 units a year, but was quick to add that in the near future, the company would build a plant that could produce 10,000 to 15,000 units a year.

“We have got vehicles to be shipped to us at this stage. By the first quarter of next year, our first car assembled here will be ready,” he said.

In August last year, VW signed an MoU with the government of Ghana to begin the process of establishing an assembly plant in the country to serve the West African sub-regional market.

Ghana’s auto policy

The MoUs with the auto giants followed the government’s announcement of the Ghana Automotive Manufacturing Development Programme (GAMDP), which the Nana Akufo-Addo administration hopes will, among other things, generate high quality skilled jobs in manufacturing, offer an import substitution and export promotion to improve the balance of payment.

TayserMahri:


So mastercard captures all data?? Why are you being a professional slowpoke?? What about all those people without mastercard??

You are demonstrating stupidity here? I already says it is an average assessment. no visitor comes into your country without spending. master , visa and American card are some of international recognised card ....unless You are telling me card payment transaction is unavailable to member of master card holder in Nairobi. which i will then ask what is most common? which I observed it is visa card . we can do assessment on it as well.

TayserMahri:


Must be very enjoyable being a idiot. Are you saying you don't register visitors in Ghana? What a banana republic. Kenya registered 2,025,206 visits in 2018. Thats the figure collected from the various entry points, airports, ports, border entry points etc. If Ghanaians must rely on Mastercard to tell who visited their country then you can see why your country is a failed state. A modern day slave to multinationals and IMF.

You only promote yourself as an analphabetic slowpoke here. Not all data can be captured cus there is free movement for member of ecowas state here. so using the same stick for every drum is as stupid as kenya treating every debt as opportunity. Already you have establish yourself as a province of Beijing.and at the same time a stooge for Asia colony. you see how your citizens are been cruelly treated by your modern day master .

rvp20182:
[b]How can you flush out online forex dealers? Online has no juridisctions. [/b]All CBK can do is warn them Yahoo boys. Forex online dealers are con-men who sell forex trading to gullible masses - so you open a forex trading account - fund your account - and start losing. It's online gambling.

They don't deal in any real forex. Heck they could operate from anywhere.

Then stop the argument and stop running your mouth like tap water. the above statement alredy exposed your small mind ....

rvp20182:
Breton wood institutions over competitive zero interest long maturity loan like China. The difference China do not offer conditionalities or poke noses into your national affairs or worse tell you to cut budget spending on critical social services like education, health etc.

China will ask the a collateral - or ask you to put heavy insurance - and that is all.

My beef (and I guess everyone beef) with IMF & WB - 1) their interference of internal affairs of independent countries and 2) Their very tiny balance sheet...China can lend you 10B dollars...IMF is running Ghana because they lent you 1.5B dollars. and 3) US & EU stranglehold of both - stopping attempts by China or Japan to finance IMF & WB so it can truly become global financial institution they are suppose to be.

And 4) - US gov especially uses IMF & WB to pull through underhand deals - including regime change or having Ghana as military base.


That is why I really pity Ghanians when I imagine IMF has terrorized your country for a record 16 times so much you have fallen in love with them.

Classic Stockholm syndrome.

Kwame Nkurmah must be turning on his grave. The independent Ghana has become a colony of Washington DC.

You are only typing nonsense. you can make up your statement in about two paragraph....

lender are in for business and it make more sense to regulate the loan given to borrower if you want the borrower success. China on the other hamd entrap you into a debt trap and once you failed to fulfilled it, You then become a subject and a colony .. which is more evil? .... I am tired of going thru your polluted knowledge anchor on stupidity. we do it later . I have. Monday activities to attend to...

kikuyu1:


You're up against the Katanka mindset -a mind that can only conceptualize in the simplest most rigid format. The nigga can't differentiate between online forex dealer controls and a free floating shilling yet he wants to lecture you with his pretend knowledge!

You are the idiot here.... You are not only been dogged out by the online forex, you also have local men doing the trading offline . you should be smart and inteligent enough to understand it...

rvp20182:
I see you're repeating debt propaganda on SGR & China - actually regurgiating western propaganda against fast emerging China.

Let me help for then 10th time understand our SGR loan.

We borrowed about 4.5-5B dollars from China to build SGR from Mombasa to Nairobi and now to Naivasha - including rolling stock, two dry ports (Nairobi, Naivasha) in 2014. Unlike Nigeria and other laggards...we completed the 500-600kms railway in record 3yrs.

Before we borrowed the loan - we planned to raise 15% of the total project cost - because China normally do not finance land acquisition and such - so we started collecting Railway Development Levy as early as 2010. That RDL annually collects now about 30B kshs (300M dollars) - that is more than enough to pay China.

What are our loan terms with China (Exim bank of China) - half the loan is commercial (2% above LIBOR) and half the loan is concessionary (nearly zero interest maturing in 20yrs). We also got 5yr grace period for commercial loan and 7yr grace period for concessional loan. The idea is the railway in initial years will start slowly - and won't break even the first 7-10 yrs.And we also put in a huge insurance with Chinese in case of non-repayment.

Now according to projections we had with Chinese - the railway would no break even - for first nearly 10yrs - and yet 3yrs later - our SGR is approaching break point. It already has carried 3.5m passengers and 5 million metric tonnes - in the first 2-3 yrs of operations. We are running 14 trains every day.

Now compare say to Ethiopia - that is still running 1 or 2 trains - and has asked China for loan extensions.

So before we ever come to defaulting in SGR
1) SGR will break even - and hopefully pay for itself
2) Railway Dev Levy - will pay for it -1.5% (now increase to 2%) of all imports (except raw materials)
3) We will ask Chinese to extend the loan terms
4) Insurance will pay for it.
5) We will default - in year 3030.

I think you have drop of your coffee tea running off your brain? when it comes to your Chinese loan , you called Bretton wood institution propangadist, when it comes to transparency, you called China communism an outdated model which is not good for capitalist nation. then you blame TZ and kwame inkrumah ...

You talk with two mouth and this has exposed you as irresponsible idiot. for the fact that China refuse to loan you further exposed your country as debt trap nation.

rvp20182:
Dude these are ONLINE FOREX "dealers". They are conmen who lied to kenyans to open Online forex account so they can be trading forex. These are Yahoo boys of Kenya.

‘’The purpose of this notice is to warn members of the public against dealing with unlicenced and unregulated online forex dealers. They should only deal with genuine and licenced financial institutions and entities,’’ CBK statement read.

so what are you suggesting? That the cBK have flushed them out or they don't exist anymore..... and apart from that , many indication still suggest you have unregulated traditional forex exchange...

Don't be stupid bro. go learn....

rvp20182:
Provide a link and we can have a fruitful conversation. Yes Ghana export tonnes of minerals - heck the country name is GOLD COAST - and kenya doesn't - but there is no denying that kenya is a sophisticated economy for it's size.

We have survived for what 60yrs with negative trade deficit - it's a non issue. Ghana has called IMF 16 times every time commodity prices have collapsed in the world market. You admitted your economy is still largely primitive, informal and black market.

We know where to get the forex to bridge the 11B dollar deficit. KQ for example bring forex from Ghana to Kenya. Kenya companies all over East, Central and South Africa bring forex. The fact that Kenya is seen as safe and stable haven - bring lots of forex from the region. We also know lots of Africa operations by MNC are running of Nairobi - they ship forex to Kenya.

You keep repeating this imf called as anything harmful. every deal with IMF has a public knolwedge. the law governing on servicing public debt are well regulated by the goverment....what becomes more suspicious is a debt trap policy with China whose information regarding defaultment are not known...

Even without our gold and oil we we still be doing better above you ... we build our dam which has lasted over 50 years with the gold money , and it is regarded as the largest man made dam in the world by surface....

Your unknown forex earning which IMF was blocked to unearth did not exist anywhere except your head. your negative trade balance suggest you are not doing well. Every country with a strong currency has a profit trade balance except that of kenya ....most of kenya companies aborad have a double tax taxation with their host country, they may not be necessarily sending huge cash flow back home apart from internal income .....


when it comes to foreing direct investment, Ghana is doing far well above you and it is not limited to mining and oil. our cocoa industry is a testament......




go CHECK on the export service on world export . it is not a rocket. science. ...

rvp20182:
You're just confused fellow typing nonsense. Your airport and seaport; like you seriously want to compare yourself with Kenya?

Kenya debt market is mostly local debt - we are careful with external debt because of exogenous currency risk - so Kenya might have 60B dollars debt - but about 35 of that is owed to kenyans - and are denominated by KShs. CBK can just print Kshs and pay that off. The 25B dollars is external debt - about 1/3 of that 25B dollars is public guarantee to gov parastals - we never have to repay unless they go under. So that leaves us with about 15B dollars of debt - split btw commercial and concessionary loans - all mostly with long tenures...maturing in 50yrs.

In short - we don't have any debt repayment problem - monthly our total debt repayment comes to about 35-40B Kshs - and we collect about 120B dollars from taxes - we also borrow about 34-50 billion - so in short we have no problem at all.

Ghana has to start attracting investment outside minerals and natural resources...and we can talk about you having a MODERN ECONOMY.

Look at even low hanging fruit like ICT - NOTHING IS HAPPENING IN GHANA - LAGOS is doing great - so is Nairobi.

i only educate you in what exportable service related activities entails.... Your current external debt with China is an example as you keep making lost on the SGR.........

Your country’s public debt compared with its national income. is alarming, with a known population of 53 million, it implying that every Kenyan owes above 1000 dollars

You debt is becoming Unsustainable. which is very deadly Reason for your poor social programmes because huge portions of government revenue are taken away from essential services and used instead to service debt.

You can't pay with your teeth , you have to make a lot of revenue to automate that. never compare Nairobi to lagos ever again in your wet dreams. you are stupid doing so. is it because I by pass You doing so.

rvp20182:
I am not sure where you are getting the data about exportable services. Ghana problems mirrors Nigeria - Zambia, Angola, name any africa country dependent on commodities.

If today you wake up - Aluminum prices are down by 30%, Oil down by 30%, Bauxite by 30%, Cocoa by 30% - Your country forex will be whipped out in a few days. You currency will depreciate so fast - and IMF will come for 17th rescue mission.

The reason why Kenya sits comfortably without any worry in life is because we have a VERY WELL DIVERSIFIED ECONOMY with very STRONG DOMESTIC ECONOMY.

We will only worry if we go into a civil war or a huge disaster.

There is clear report on what Ghana make in forex service earning ? go CHECK on world export , we are doing way above you and that is 7.5 billion dollar . don't hide under that to promote your ignorance...

You also have the same fundamental, you are not an industrialized state. A very agrarian economy cannot stabilized on weak demand. Your tea market alone can sell you off, if it weaken above the current threshold...

rvp20182:
Check the source of your data again. There are no forex controls in kenya. Kenya is not a dollarized economy.

There are no unregulated forex - and regulation is minimal - Capital requirement of 20M kshs, to have Know Your Customer(demand Identification) and for them to just report their deals of more than 10K usd to CBK - and nothing more than that.

Most people buy forex from their banks. There is no need to ever find yourself in Central Bank - and nobody has even run out of forex to import anything they want.

And there is no drama when it come to dollars or any foreign currency in kenya - You buy as much as you want and take them to Ghana - to help shore your CEDIS.

Every articule out there suggest your bank has placed warning and ready to arrest unregulated forex exchange trader. which suggest they operate and if we should go by your corruption index , many unhiding forex swapping is taking place

rvp20182:
Learn to use hyperlinks.

Okay what is your understanding of exportable service sector - or you mean remittance from Ghanians abroad?

Kenya's Nairobi is the region financial capital. That bring a lot of dollars for starters.

Your exportable service is all human related service sector you are doing in kenya that attract forex earning . from the airport to your sea port. we are doing well above you. go and confirm it. we do more than 7.5 billion dollar ...


Your lots of dollars aren't all going into your pulse, some are going into service of loans and payment of Chinese debt. so the left over can't stabilized your currency .


I know you understand the current foreign investment coming in to Ghana. you are not nearer

rvp20182:
It helps our Central Bank Governor is former senior staffer at the IMF so he understands when junior economist send to kenya tries their monkey business. In any case when is KSHs devaluing?- it been nearly two years since IMF claimed it was overvalued?

Yes kenya has Africa highest trade deficit of 11B dollars...but trade is not only way to get dollars. When you have an well-diversified sophisticated economy like kenya - you do not need to export Gold or Oil to earn Forex. We earn lots of Forex from 'exportable' services sectors.

We have very healthy forex reserves - playing around 6 months of import bill - 9B dollars - way above the recommended 4 months cover.

We even do more on forex exportable service than you .... we are currently doing over 7.5 billion dollar against your weak 5 billion dollar .... we have boost our reserve above 10 billion dollar and we are making sure not all goods that can have effect on forex exchange are bought in dollars . that is why we are trying to be independent here . we have reduce many importation and we are still doing more...

Your weak current service export does not mean that the excess of value in terms of export is made available to kenya . The excess in value of export may be for interest payments for loans contracted or bonds issued or the Chinese loan you borrowed so you can only stabilized it with another loan from elsewhere.


so what your country is doing is debt to debt which will soon exposed you...

rvp20182:
It helps our Central Bank Governor is former senior staffer at the IMF so he understands when junior economist send to kenya tries their monkey business. In any case when is KSHs devaluing?- it been nearly two years since IMF claimed it was overvalued?

Yes kenya has Africa highest trade deficit of 11B dollars...but trade is not only way to get dollars. When you have an well-diversified sophisticated economy like kenya - you do not need to export Gold or Oil to earn Forex. We earn lots of Forex from 'exportable' services sectors.

We have very healthy forex reserves - playing around 6 months of import bill - 9B dollars - way above the recommended 4 months cover.

Your exportable service service sector is even weak compare to Ghana. 5 billion dollar to 7.5 billion is a big dammn diffrence fool... Ghana reserve already hit 10 billion dollar ..

you can't have a strong currency with negative trade balance. unless you artificially maintained it . either thru massaging or loan to stabilized . you received very mimminal amount of hard currency....


2
OpinionsMon, 18 Mar 2019
The real problem of the Cedi

Ghana Cedi
The Ghana Cedi

Listen to the Article
The economy of Ghana has been a net-importer for at least five (5) decades. Many things that can be produced locally are usually imported. However, these imports have huge impacts on the price at which the Cedi must be exchanged for other foreign currencies.

Demand and Supply of foreign currencies have huge consequences on the price that they must be sold or bought. Demand and Supply of the of the forex is the main determining factor of the price of foreign currency. Countries such as the US and Britain do not need to trade their currency for a new one in order to buy from an international market.

These countries do not suffer the problem of demand and supply of their economies. The reason for that which causes this economic challenge is the lack of consistency in the inflows of foreign currencies. Once the importers, travellers (for Air-ticketing), Tenants (Rent payment) need the dollar especially, to enable them to transact businesses, the demand for the dollar will be high.

The supply of it, on the other hand, depends on the loans including the bonds, grants, cash aid and some foreign exchange from exports that the country receives. Any time there is an imbalance in the equation between demand and supply, the price of the exchange will shoot up. This means the injection of more dollars or other foreign currencies into the economy will only stabilise the rate of the exchange and not constitute a terminal solution.

The real problem of the depreciation of the Ghana Cedi has not been identified in the past. Even if it has been, the solution to the problem has not been applied. The solution is not the injection of the dollar that is often applied by the BoG.

The solution prescribed by many Economists to perpetually solve the depreciation of the Cedi is industrialisation. I heard on Joy FM's programme, Newsfile that industrialisation is a Post-World War tool or strategy designed for countries to enable them to develop and that its relevance has diminished in modern economies. This argument is extremely flawed and does not assess the model properly. Industrialisation is a critical model for the development of countries. The argument that infrastructure is the main development growth strategy that is superior to industrialisation is equally flawed.

There will be heavy infrastructural development if a country industrialises. There cannot be industrialisation without infrastructural development. Infrastructure comes in the form of building roads, railways, factories etc. Industrialisation must be embedded with infrastructural development for countries to really experience the benefits of it. Therefore, industrialisation will be the basis for proper infrastructural development. Industrialisation is a model that is still relevant in modern economic discourse in the 21st century. The argument that Ghana cannot compete with other advanced or industrialised countries is weak.

Industrialisation may not necessarily mean heavy investments in technology and automobile. It can mean the manufacturing of home appliances, shoes, production of foodstuffs, chemicals, fertilisers, production of rice, production of chicken etc. It can begin from cottage industries to light and heavy industries. The East Asian “Tigers” never had it easy in their quest to industrialise. They moved from an easy stage to a more difficult or complicated stage in their industrial development. Japan, America and Britain had already taken off before the East Asians including China emerged. They had the courage and competed with the already advanced economies.

The industrial drive of the country and many other African countries is handicapped because we have resigned to fate and have accepted the belief that we cannot compete with anyone. In building an industrial economy, the idea is not even about competing with advanced countries or economies. It can be the grounds to partner with high-tech companies in developing some of the industries or sectors of the local economy. Industrialisation is not seen as the key to the Economic transformation agenda in Ghana and some African countries because it has been a political rhetoric. It has not been practised in actuality.

It has been paperwork for so many years now. Every country has a comparative advantage that must be identified to have a competitive advantage of other countries. The inability of Ghana to identify its comparative advantage in order to competitively deal with the rest of the world will continue to push the discussion about the exchange rate further and its persistent depreciation will continue for centuries. Industries can be built to put a halt to the importation of some items in our trade. The statistics from our trade indicates huge importation of rice, chicken and other basic goods that can be produced locally. The talks only happen but the search for the solution is not done. The government needs to identify the problem of the Cedi from the data of the Ghana Statistical Service.

The solution to the problem of the Cedi or the exchange rate is in there. Some institutions in Ghana demand that all monies that must be paid to them should be in dollars and not Ghana Cedis. Houses and rent are bought and paid for with the dollar. In solving the Cedi’s depreciation, the state needs to check the feasibility of reverting the regime of valuing products and services provided to the citizens in dollars.

Rent and houses should be valued and sold in Ghana Cedis and not in dollars. One of the ways of controlling the exchange rate is banning the use of foreign currencies in a domestic economy. There is no reason for people to use foreign currency such as the dollar to pay for rent and other services in Ghana. The use of the dollar for Air-ticketing cannot be changed. The method adopted by the BoG to regulate forex trading is ineffective. Those in the Black Market must be banned or have their activities regularised.

let me teach some basic economics fundamental..


Your forex from exportable service does not mean that the excess of value in terms of export is made available to the state. Your excess in value of export may be going for interest payments for loans contracted or bonds issued or the Chinese loan you have taken

rvp20182:
Forex dealers are in kenya are regulated to protect consumers, ensure they are no illicit flows or money laundering. There are no Forex controls.Those two are not mutually exclusive. There is nothing you can teach me in any serious subject - except maybe Yoruba customs & voodoo.

You have started to loose your grip on inteligence and I will not further hesitate to call you an idiot henceforth .....


Your country operate both regulated and not regulated forex exchange... You cBK knows and it has started clamping on them...

Your cBk do not suffer the problem of demand and supply of their economies. The reason for that which causes this economic challenge is the lack of consistency in the inflows of foreign currencies. Once the importers, travellers (for Air-ticketing), Tenants (Rent payment) need the dollar especially, to enable them to transact businesses, the demand for the dollar will be high amd this is happening in Your country as it is a dollarised country just exactly like Ghana. people prefer dollar to shilling in kenya and yet shilling still maintain false stability against the dollar. something is really wrong . it is either abnormally protected or borrowed money is used in regulating it. they are many non regulated agency who are ready to swap shilling to dollar without the control price. Your cBK is aware.

I am questioning your inteligence.... you know next to nothing on how forex exchange volatility affect exchange rate itself...

rvp20182:
When did we refuse for them or anybody out there to come and value KShs . They put Kshs to scale - their own brand new scale - and said it was over-valued - we are still waiting for Kshs to heed to IMF - it seem defiant.

CBK cannot release market-sensitive data - We are not an IMF colony like Ghana.

IMF had said that the Kenyan shilling risks being classified as “managed” rather than operating on demand and supply.
“Reflecting limited movement of the shilling relative to the US dollar, MCM’s (Monetary and Capital Markets’) 2018 report on exchange rate arrangement to be published in February 2018 will reclassify Kenya’s shilling from ‘floating’ to ‘other managed arrangement’,” said IMF. Njoroge said CBK would only release data if it was no longer market-sensitive, adding that this was a global practice.
“ We do not comment on currency interventions until we judge that it is no longer market-sensitive. Check anywhere, the Bank of England, check how much information they reveal ” he said.

The governor added that the interventions were not done with “favourite players in the dark”, but rather during open market operations with banks, which knew whenever CBK intervened.
He also added that Kenya was an open economy with no controls over current or capital accounts.
The Central Bank, the governor said, operated a flexible forex market that did not target any particular rate but allowed the market to price it.

https://www.standardmedia.co.ke/article/2001304396/njoroge-tells-off-imf-over-shilling-value

IMF are smart ? they don't have a brand new scale, they follow simple economic model.... it is so simple ...

You keep increasing negative trade balance and is so huge . that alone is a suspect to your weak currency....


every country with strong currency have a positive trade balance except kenya shillings

rvp20182:
Forex control and regulation are different. Regulating forex beaureu doesn't mean controlling them. You can buy forex from the counter of any bank in Kenya. Banks, forex shops and anyone with dollars can quote any rate they want. Our central bank only intervene to smoothen things..by buying or selling forexs to open market....but when Kshs is getting serious hits..they let it slid. That is how Kshs has slid from 65 - to 75 to 85 and to 100kshs - and even 107shs. When fundamentals of Kshs are strong it climbs up. It has done this - rising to 80 then back down to 65.

We had forex controls in 1990s - and like Nigeria - or I think Ghana - you needed to apply to Central Bank for forex. Kenyan businessmen, importers or anyone who want forex doesn't even know where CBK offices are...and will never need to go there. Just make a call to you banker, agree on forex rate, and change your money.

All CBK does is to regulate - so banks or forex report all forex deals - to ensure money laundering and illicit money - are not finding their way in.

You should be a good student... The question is , Are all forex exchange dealer regulate in kenya? a simple answer to this will naturally educate you . you don't need to type thesis or literature review... they are many ways to protect weak currency and I can teach you for free....

rvp20182:
We do not have any forex controls (you can bring or take as much as dollars as you want) - and our CBK doesn't print USD - so how can we managed to artificially inflate Kshs? If Ghana cannot do it - how can Kenya do it with even less forex reserves.

IMF were wrong - and used Kenya as guinea pig in a new methodology.

Then why did your goverment refuse to let IMF specialists put the value of the shilling to scale?

why did your goverment failed to disclose crucial data to assess the shilling’s real value?

rvp20182:
Managed - allowed to float within some target/margin. Plus you have tonnes of Forex controls. Kenya has been free-floating until IMF recently classified us "managed float' and we do not have ANY forex controls.

Are you saying all those who involve in the buisness of buying and selling of forex exchange in Kenya are all licenced by your central bank?


currency control is different from market control....pls go learn about it.. . don't want to be harsh on you today

rvp20182:
As regard kenya - It always been free - floating without any forex controls.IMF recently disagreed because they cannot figure out why KSH is defiantly strong - and put KSHS in "Managed Float"

The “other monetary policy framework” category total remained at 46. The number of countries that are
not committed to a specific target (the “other” column in Table 2) was affected by four changes during the
reporting period: two countries (Papua New Guinea, Uzbekistan) reported the use of a multiple-indicator
approach to monetary policy, and two countries (Costa Rica, Jamaica) moved to inflation targeting. A
few countries in this category have taken preliminary steps toward a transition to an inflation-targeting
framework (Kenya, Mongolia, Mozambique, Sri Lanka, Tunisia). This category includes many of the largest economies, such as the euro area and the United States, where the monetary authorities have sufficient
credibility to implement monetary policy without a specific monetary anchor. It is also used as a residual
classification for countries for which no relevant information is available and for those with alternative
monetary policy frameworks not categorized in this report.
Foreign Exchange Int

stop lying to us we know. we know how your goverment make it a political issue, since shillings is a sensitive subject cus for every percentage of devaluation, the size of your external debt grows. For every shilling borrowed for dollar loans such as the Eurobond in 2014 and the one borrowed in 2019 at around 87 units, a dollar will be paid back at 101.2 units a dollar currently, or higher if it depreciates further. so your goverment understand the reasons for its protection.

looking at the gap between your exports and imports both cyclical and actual, that are currently above normal. it suggest your currency can never be a true reflection of its value, you can't be exporting 5 billion dollar and importing 15 billion dollar worth of goods and still maintain a stable currency... something more is abnormal.... every strong currency have a positive trade balance. your trade negative balance is too huge ....pirchasing power is loosing so drastically ....this alone exposed you...

And for kenya to have gone to extreme levels to avoid letting IMF specialists put the value of the shilling to scale by failing to disclose crucial data to assess the shilling’s real value also expose your political massage currency...

rvp20182:

Not only is your regime managed - you have tonnes of forex controls.

According to IMF 2018

Country1 Exchange Restrictions and/or Multiple Currency Practices2
Ghana The IMF staff report for the 2017 Article IV Consultation, Fourth Review under the Extended Credit Facility
Arrangement, Request for Waiver for Nonobservance of Performance Criteria, and Request for Extension
and Rephasing of the Arrangement with Ghana states that, as of August 3, 2017, Ghana maintained one
exchange restriction and an MCP subject to Fund approval. The exchange restriction arose from the limitation/
prohibition on purchasing and transferring foreign exchange for import transactions by importers who have
not submitted to the commercial bank customs entry forms for any past foreign exchange transactions related
to imports, and which are unrelated to the underlying transaction. An MCP also arises because the Bank of
Ghana requires the use of its internal rate (i.e., the previous day’s weighted average interbank exchange rate) for
government transactions and the surrender of foreign exchange proceeds from cocoa exports funded through
the cocoa syndicated loan, without having a mechanism in place to ensure that, at the time of the transaction,
this exchange rate does not differ from the rate prevailing in the market rate (i.e., the interbank exchange rate)
and the rates u

so what do you now understand by this? don't let me begin to question your logic today .... it is just dammn early here....


what do you understand by manage exchange rate ? and give us how it differ from money control?

rvp20182:
Quote of the day for poor Ghanaian CEDIS.

The vice President, H.E Dr Mahamudu Bawumia is famously reported to have said that “when the economic fundamentals are weak, the cedi depreciation will expose you”

And Just30 - Ghanian currency is managed float regime- not free floating.

Yet the strength of Ghana's fundamentals was confirmed on March 2019 by Standard and Poor's(S and P) Global, which confirmed Ghana's sovereign rating as B with a stable outlook, after upgrading Ghana's sovereign credit rating from B- to B, with a stable outlook last year.

which was the first by S and P for Ghana in ten Years. ....


my own quote for kenya......

when you lost over 50 percent of your purchasing power and still maintain ""politically"" strong currency, it is only China that can bail you out.. .


cedi is in free float, the market force and goverment reserve determine the exchange rate..... our reserve has been boosted hence the stability of the cedi for the last four month.

mtisTheQubit:

Seriuosly avoid those guys...they are wicked...

good nite man...

bye .... China aren't friendly either....

mtisTheQubit:

Truth be told, since Chinese landed in Africa you can see progress...I myself can say much progress occurred in our country after we divorced the IMF an her sister

lol...

IMF have many mouth to feed....

mtisTheQubit:

IMF used threaten us way back...we cut loose an faced east..things are great now...

China aren't also a good friend. they may be brute

mtisTheQubit:

Vaxx you niggas know nothing about IMF..Why do you think many countries avoid them...you are new in the game...

you mean a nation who have gone thru over 16 times of it are new . we are regular customer..... Even kenya want it.

just becareful of China. nothing goes for free not even manner from China....