Friday, April 14, 2023 – Deputy President Rigathi Gachagua has warned investors against hoarding dollars, stating that they could lose millions, if not billions, starting today after the shilling appreciates in value.
Speaking while receiving the first consignment of imported petroleum from the United Arabs Emirates (UAE) under the government-to-government deal yesterday, Gachagua stated that the value of the dollar would decrease beginning April 14 while that of the shilling would increase.
According to him, the importation of oil in shillings relieved pressure on the dollar and allowed for its normal circulation in the market.
“Let me ask all those Kenyans, business people and investors who have been holding dollars for speculation purposes to offload your dollars in the market today and tomorrow. It will go down starting today, tomorrow and the day after.
“It’s a piece of honest advice from a truthful man. With what has happened and the 500 million dollars used to purchase fuel every month, the demand for the dollar will come down and the shilling will gain and we don’t want Kenyans to lose money,” stated Gachagua.
Further Gachagua stated that the exchange rate of foreign currencies would regain its stability and in turn support economic recovery and the slow growth of public debt.
“The petroleum imports are paid for in dollars which has of late strained the country’s foreign exchange reserves. This has caused difficulty in US dollars liquidity resulting in rapid depreciation of the Kenyan shillings.”
“The country will benefit from the accumulation of foreign reserves of approximately Ksh403 billion (3 billion US dollars) in the next six months,” he added.
The Kenyan DAILY POST.