Text book explanation. Sorry that is not how the real economy works. Central Bank interventions is where it happens. The Central Bank determines the price by buying or selling reserves . Most nations use their Central Banks to peg their currency to the dollar and create Macro Economic Stability. It was a big mistake to allow the shilling to fall in the manner that it did, however , Central Bank had no choice as they needed money to pay the Eurobond loans. Now that the Government has a wash of new cash, the Central Bank can go back to rescuing the shilling. On Monday they will sell off a few hundred million dollars in reserves and this will cause the price to go down and panic selling will ensue causing the price to fall even further. According to Gachagua they want the shilling at 100 to the dollar. Let’s wait and see.
@@paulnyagini I have learnt over the years never to talk down your country. This reality begins to manifest. That is the whole purpose of Hollywood. They are paid and controlled to create this narrative that keeps the American Society feeling good about their country even when the reality on the ground doesn’t show this. Today in America we have about 12 million kids homeless, and 90% of the country is one paycheck away from homelessness or a serious crisis. Yet Hollywood continues to produce content that totally contradicts the reality on the ground. Somehow America is able to pull through each crisis , however that has to do with general Optimism, created by Hollywood. It known as the power of words. Kenyans can learn a lot from this. I am also not sure how you calculate GDP growth when purchasing power falls by 100%. I may have to go back to my text books to understand that.
Bro kuja ukule chima kilo Moja kwa bill yangu. This guy does not want to say it as it is with this case scenario in kenya. How comes it dropped all of a sudden? Awache kutupima
@@llewellynouya Apenjie? Don't you think this rogue govt can use the CBK to conduct an inorganic, short-term fiscal intervention to manipulate the FOREX? I believe they didn't learn from the great depression. The 1930s fall coincided with a rash of mortgage defaults and foreclosures.
Thank you for the explanation but should CBK be mopping up dollars or should they just allow the shilling to strengthen further, maybe even go back to the good old $1 = kes 100/- rate
That is macro economics knowledge, however, that is not the case scenario in kenya with this influx in the dollar exchange rate to almost hitting $1= Kshs. 180. It was a financial scheme played by the top and MIF to gain in the difference. Why the sudden drop? You are always right lakini kwa hii, sema tu vile ilivyo Kenya as per this scenario
A buy back is the process whereby you repay the loan (bond in this case) before its term. Bonds are issued by the borrower so when you buy back the bond, it is like making an early repayment on a loan.
@@accuratestores8769Why not? Under normal circumstances you repay loans using your reserves. Hata kale kaloan watu huchukwa from shylocks, si huwa wakilipa from their own reserves? The difference here was because the govt had no money to repay a bond which it had issued 10 years ago, and chose to issue another bond (or is simple terms take a loan to repay an older loan that was falling due) to repay an older loan.
@@georgeodhiambo598 manze that's not the definition of a buyback and loans are not paid via a buyback, a buyback is when the issuer of a security buys back the issued securities so that they become the holders of these securities
Its has returned to where it was If you dont know, there are people in Eastleigh who can make the dollar to rise or go lower. Today they push the dollar to go up
No it doesn't this is a Euro Bond issue, if it were issued by NSE it would have affected them directly the only means it can affect NSE is by redirecting foreign investments into this bond instead of bonds issued by the NSE
You are the pathetic human here..if he is wrong you have the platform to correct him, and we learn in the process...mocking his effort is not helping us here. Go to hell
![Megan Thee Stallion - Bigger In Texas [Official Video]](http://i.ytimg.com/vi/QxTkZTLWdo4/mqdefault.jpg)
Thank you very much Llewellyn, you've explained that very well.
You're welcome
Thank you bro you use the easiest possible language understandable by our common your man
You're welcome
Explained like a pro. Thank you.
Thank you
@@llewellynouyakeep up the good work
Excellent explanation. Thank you
You're welcome
Easy for everyone to understand.,kudos👍🏻
Great content bro. keep up
Thank you
I think its deeper than that, you have to look at a number of things eg macro economic performance and outlook etc.
The best explanation ever.. At least I'm somewhere 👍
Thanks
The pro himself! Mr.KnowItAll🔥
Thank you!
Sawa bro, info safi kabisa,,, ebu ni explinie bond Nini, na vipi gover inafloat bond
Good job...hapo kwa euro bond kindly make it a topic and explain it ...personally I don't understand it
Okay.. I will
Thanks. It has been 4months now and the dollarvis still going down. Do you think it is time to let go maybe?
Buda,,, 4years in College... yet umeExplain better Than mwalimu. 😂. Wazi OG.
Shukran sana
Text book explanation. Sorry that is not how the real economy works. Central Bank interventions is where it happens. The Central Bank determines the price by buying or selling reserves . Most nations use their Central Banks to peg their currency to the dollar and create Macro Economic Stability. It was a big mistake to allow the shilling to fall in the manner that it did, however , Central Bank had no choice as they needed money to pay the Eurobond loans. Now that the Government has a wash of new cash, the Central Bank can go back to rescuing the shilling. On Monday they will sell off a few hundred million dollars in reserves and this will cause the price to go down and panic selling will ensue causing the price to fall even further. According to Gachagua they want the shilling at 100 to the dollar. Let’s wait and see.
Realistically is impossible for shillings to reach 100 . probably will be 200 by 2025.
@@paulnyagini I have learnt over the years never to talk down your country. This reality begins to manifest. That is the whole purpose of Hollywood. They are paid and controlled to create this narrative that keeps the American Society feeling good about their country even when the reality on the ground doesn’t show this. Today in America we have about 12 million kids homeless, and 90% of the country is one paycheck away from homelessness or a serious crisis. Yet Hollywood continues to produce content that totally contradicts the reality on the ground. Somehow America is able to pull through each crisis , however that has to do with general Optimism, created by Hollywood. It known as the power of words. Kenyans can learn a lot from this. I am also not sure how you calculate GDP growth when purchasing power falls by 100%. I may have to go back to my text books to understand that.
This man explained it correctly though. The shilling might suffer even more after a few months God forbid.
@@7sneves As long as the central bank has sufficient reserves to stabilize the shilling that shouldn’t happen.
Bro kuja ukule chima kilo Moja kwa bill yangu. This guy does not want to say it as it is with this case scenario in kenya. How comes it dropped all of a sudden? Awache kutupima
waa nimeshikanisha vitu mingi sana ebu explain hio part ya bond vizuri
Explicit! This guy is a pro.
Thank you
@@llewellynouya Apenjie? Don't you think this rogue govt can use the CBK to conduct an inorganic, short-term fiscal intervention to manipulate the FOREX? I believe they didn't learn from the great depression. The 1930s fall coincided with a rash of mortgage defaults and foreclosures.
Bro that is not the reason the main reason is the dollar index has reduced world wide not only in Kenya
Very insightful
Thank you
Thank you for the explanation but should CBK be mopping up dollars or should they just allow the shilling to strengthen further, maybe even go back to the good old $1 = kes 100/- rate
Stabilizing to 100 bob this year would be disastrous for Kenyan exporters, especially if it happens too suddenly. Hopefully with time though.
That is macro economics knowledge, however, that is not the case scenario in kenya with this influx in the dollar exchange rate to almost hitting $1= Kshs. 180. It was a financial scheme played by the top and MIF to gain in the difference. Why the sudden drop? You are always right lakini kwa hii, sema tu vile ilivyo Kenya as per this scenario
You can’t prove that though.
The main reason os the 💶 bond . The other factors are still constant.
People should not panic coz the dollar will project high again soon.
Well explained.
Thank you
Thank you
Very informative 😊
Thank you
Well explained
Thanks
Will it rise again ama ndio ita drop kabisa
Plus they timed the Chinese New Year holiday where imports from China would be reduced...
The best way a young authentic Kenyan can become a celeb
What do you mean?
manze unajua kitu unabonga? What affects the price of the dollar? What is buyback of a bond? uko sketchty usipoteze watu
ati we pay with reserves or buyback 😂😂🤣
A buy back is the process whereby you repay the loan (bond in this case) before its term. Bonds are issued by the borrower so when you buy back the bond, it is like making an early repayment on a loan.
@@accuratestores8769Why not? Under normal circumstances you repay loans using your reserves. Hata kale kaloan watu huchukwa from shylocks, si huwa wakilipa from their own reserves?
The difference here was because the govt had no money to repay a bond which it had issued 10 years ago, and chose to issue another bond (or is simple terms take a loan to repay an older loan that was falling due) to repay an older loan.
@@georgeodhiambo598 manze that's not the definition of a buyback and loans are not paid via a buyback, a buyback is when the issuer of a security buys back the issued securities so that they become the holders of these securities
well explained
Thanks
Its has returned to where it was
If you dont know, there are people in Eastleigh who can make the dollar to rise or go lower.
Today they push the dollar to go up
informative and accurate
Thank you
Would you advice to buy dollar rynna?
So it's just a temporary caution?
Worldbank imepea kenya dollar nyingi ndio sababu
Si tuseme tu ni Remotask tuache story mob 😂😂
Taptengelei dollar🤣
Because of HAITI going.
And does it affect the NSE
No it doesn't this is a Euro Bond issue, if it were issued by NSE it would have affected them directly the only means it can affect NSE is by redirecting foreign investments into this bond instead of bonds issued by the NSE
Swaafi
Thanks
So you think kenya is the main reason dollar is crushing...my guy.... pathetic
You are the pathetic human here..if he is wrong you have the platform to correct him, and we learn in the process...mocking his effort is not helping us here. Go to hell
You need to research more...thats not the actual reason
You that understands the reason, why are you refusing to tell us
Boss you are so sad. Sort mashida za kwako.
You have a point.
It is not the main reason but one of the reasons.
Kama ni mwalimu haukuelewa pale shule, ni huyu wetu wa dunia utamwelewa. Ni kelele tu uko nayo fanya video yako useme izo actual 😂. Nonsense things
😢😢😢😢 mnipitie basi kama ni ivo❤😢
Sasa tusifinyafinye🥲