Kenya’s Central Bank Chief Says Currency Has Been Overvalued For Several Years
<p>"We have tried to maintain a fairly strong exchange rate artificially at the cost of losing international reserves."</p>
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The governor of the central bank of Kenya, Kamau Thugge has said that the country’s currency, the shilling, which is trading at a historically low rate, has been overvalued for several years.
The currency hit a new all-time low on Monday, at 150 shillings to the dollar, down 24% year-on-year.
The governor made this known to a parliamentary committee on Tuesday.
“I think for several years now we have had an overvalued exchange rate.
“We have tried to maintain a fairly strong exchange rate artificially at the cost of losing international reserves”. he said
Thugge said that around five years ago, the International Monetary Fund and the World Bank considered the shilling to be between 20% and 25% overvalued, adding that the country’s foreign exchange reserves cover less than four months’ imports.
“This is still sufficient to deal with any emergencies,” he added.
According to Treasury figures, this depreciation makes imports more expensive and adds to Kenya’s debt burden, which stood at more than 10,100 billion shillings (64.4 billion euros) at the end of June.
The Kenyan economy was seriously shaken by COVID-19, followed by the shockwaves of the war in Ukraine and a historic drought in the Horn of Africa.
Economic growth slowed to 4.8% last year, compared with 7.6% in 2021, and growth forecasts for 2023 are lower than for 2022.
On a serene Sunday evening amidst Nigeria’s bustling “Detty December” event offerings, literary enthusiasts and art lovers converged to embark on an immersive sensory adventure…
<img src="https://www.mtlblog.com/media-library/shelves-at-a-canadian-grocery-store.jpg?id=61429794&width=1245&height=700&coordinates=45%2C0%2C45%2C0"/><br/><br/><p>Back in February, <a href="https://www.mtlblog.com/quebec-tourism-ad-american" target="_blank">tensions between Canada and the United States</a> escalated after President Donald Trump announced <a href="https://www.narcity.com/trump-tariffs-canada-how-might-impact-you" target="_blank">steep tariffs on Canadian imports</a>. Framed as a national security issue by the White House, the move was seen as a slap in the face to one of America's closest allies.</p><p>Almost overnight, a grassroots boycott movement emerged across Canada. Shoppers pledged to avoid U.S. products, travel, and chains, and social media lit up with calls to "buy Canadian" in protest. Even small actions, like <a href="https://www.mtlblog.com/made-in-canada-grocery-items" target="_blank">skipping American-made ketchup</a> or <a href="https://www.mtlblog.com/montreal-airport-us-travel-canada" target="_blank">cancelling cross-border trips</a>, became political statements.</p><p>Now, nearly half a year later, the North American trade war is still on, and maple leaves on labels are a regular part of the grocery shopping experience. With that in mind, we recently asked MTL Blog readers if they're <em>still</em> boycotting the U.S. — and how. The answers were varied, thoughtful, and in some cases, downright surprising. </p><p>Here are some of the top responses from the <a href="https://www.facebook.com/MTLBlog/posts/are-canadians-still-boycotting-the-usa/1205029894998252/" target="_blank">Facebook post</a>, which has amassed over 5,000 replies. </p><h3>Yes</h3><br/><p>For most of the readers who responded to the post, the boycott is alive and well. One user, firm in their resolve, shared that they're "100% not going [to the U.S.] for at least 3 1/2 more years," adding that they regularly check labels to buy Canadian whenever possible.</p><p>Another reader said they've made a point to cut ties across the board: "Vacation, food, booze — I make a deliberate effort to choose away from US."</p><p>Someone who recently travelled across the border noted the drop in traffic, remarking that "there wasn't a single car in the line at the border," and took that as evidence that the boycott is working.</p><p>For others, though, the decision plays out in smaller, everyday moments, like putting down a tempting snack. One user recounted spotting "beautiful looking green grapes on sale" only to place them back on the shelf after discovering they were grown in the U.S. "Couldn't do it," they wrote. "Put them back and went without."</p><p>Another commenter drew a firm line: "All my food produce has to be Canada first, Mexico second, and any other countries but the US."</p><p>Plenty of folks said opting for local goods has been easy, since Canadian products are of "better quality."</p><p>The boycott has shaped the vacation plans of Canadians, too. "I'm sitting here in Cuba because I'll never go to America again," said one user.</p><p>Others made it clear this isn't a new lifestyle, just a strengthened one. "I was buying only Canadian before the trade war hit," wrote a long-time supporter of local goods. "This trade war made me confirm even more that buying only Canadian is and was a proper thing to do."</p><h3>Yes, but only as long as Trump is in charge</h3><br/><p>A common thread among many responses was that their boycott wasn't about the U.S. as a whole, but specifically about its current leadership.</p><p>"Is Trump still president? There's your answer," wrote one reader.</p><p>"As long as Trump is the head of state," said another, "I'm out."</p><p>Others echoed that they're sticking to the boycott "until Trump leaves," suggesting their protest is less about trade and more about politics.</p><p>"Will miss going to the States, but will stay home as long as that bully is in charge," one comment read.</p><p>The Trump administration's <a href="https://www.mtlblog.com/canada-border-travel-advisory-us" target="_blank">enhanced border security measures</a>, which include possible searches of electronic devices like phones and laptops, also seem to be playing a part, with one commenter saying they'd "rather not take the chance of unlawful detainment, among other things."</p><p>One user even took it as far as revealing that their future travel plans could be shaped by the next administration: "I will not go to the US until Trump is gone. And then I will have to decide if I will go, depending upon who replaces Trump."</p><h3>It depends</h3><br/><p>Several readers took a more nuanced approach, saying they will head south of the border. As for their shopping habits, decisions often come down to context. "If the Canadian option is low quality, I'm going to pay more for quality than buy a cheap product that needs to be replaced sooner" one reader explained.</p><p>Another pointed out that "if the product is made in the USA, I won't buy it," but added that if it’s "a U.S. company but made and produced in Canada, then yes, I buy."</p><h3>No</h3><br/><p>Of course, not everyone jumped on the boycott bandwagon. Some admitted they never saw the point. "Nope… never did," one person put it simply.</p><p>A few felt the whole idea missed the mark. "Ordinary Americans deserve our support," one commenter wrote. "Local businesses and cross-border towns… they are welcome in Canada too."</p><p>For others, it mostly comes down to the price tag. "Whatever is better for me," said one practical shopper. "If local strawberries are $9 and American [ones] are $3, I'm buying American."</p><p>Another kept it short and sweet, revealing that they are simply "going with the cheapest."</p><p>And for one user, it was all about getting the most bang for their buck: "The combination of cheaper price and best quality products makes my wallet happier! I don't care [about the] product's nationality."</p>