The Equity Group Holdings chief executive officer Dr. James Mwangi has broken his silence on the ongoing strengthening of the Kenya shilling against the US Dollar.
Dr. Mwangi broke his silence during an interview that was conducted by a local business newspaper on Friday.
According to Dr. Mwangi, the strengthening of the Kenya shilling is an act of the currency finding its true value.
“The shilling has found its value in the market place. I believe the price we are seeing is the market value,” said Dr. Mwangi. His sentiments came days after the shilling cooled off from its sharp upward movement in what is widely being seen as a more predictable and stable movement.
Nonetheless, Dr. Mwangi cautioned that the future movement of the local currency will remain dependent on the forces of supply and demand.
“The shilling is dependent on the supply and demand of dollars, and the demand for imported goods by Kenyans. Those two factors will determine the direction the shilling takes,” he said.
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“It is question of whether we will suddenly develop an appetite for imported goods, which are now more affordable, and then exert pressure through demand of dollars.”
According to data from the Central Bank of Kenya (CBK), the Kenya shilling is officially selling at 131 against the US dollar. Forex bureaus are buying the US dollar at around 128 and selling at 131. This is a massive gain from the low of 165 per US Dollar the shilling traded as at the end of January 2024.
The shilling has also gained against multiple other currencies including the Sterling Pound. For example, at the beginning of the year, the local currency was at between 205 and 210 against the Sterling Pound. Currently, it is at 164 to the Pound as per the forex data from the CBK.