CBK’s new exchange rate policy is bad

Central Bank of Kenya. FILE PHOTO | NMG

Stability accompanied by unsustainability offers only the appearance of true stability and must at some point come to an end”. Mervyn King, a former Governor of the Bank of England in his book The End of Alchemy, uses this quote to explain how economic crises have been developing.

A section of Kenyans have been wondering how the Central Bank of Kenya has not intervened in the foreign exchange market when the Kenya shilling has been constantly depreciating against the dollar. There are some who believe that the government has neglected this issue and should instead roll out a plan to intervene.

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