Bigger problem around dollar shortage

Firms caught stockpiling dollars beyond ‘reasonable’ needs face fines of up to Sh10 million. PHOTO | SHUTTERSTOCK

Last week, NCBA Bank held its economic Forum and managing director John Gachora, who also doubles up as Kenya Bankers Association chair, gave his perspective on the prevailing dollar shortage. Market players should be encouraged to contribute their views on such matters and Mr Gachora makes several arguments.

First, he acknowledges that there is a supply problem but is reluctant to admit a shortage. Mr Gachora says the issue is excess demand for supply to match.

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Note: The results are not exact but very close to the actual.