Browsing: US-denominated foreign currency accounts

Rich Kenyans saved Sh2.1bn in dollars daily before polls
  • The rise of 63 billion shillings in dollar deposits, equivalent to 2.1 billion shillings daily
  • wealthy individuals and large corporations looked for a secure location to store their riches in the wake of the uncertainties surrounding the elections
  • The United States Federal Reserve increased interest rates by 0.75 percentage points for a second straight time in July to combat inflation, which contributed to a stronger dollar and a decline in the value of the Kenyan shilling


A record number of wealthy individuals and businesses moved a total of Sh63 billion more into dollar accounts during the month of June as they sought to secure the value of their investments in advance of this week’s elections.

As per data provided by the Central Bank of Kenya (CBK), the total value of foreign currency bank deposits in Kenya reached a new all-time high of Sh891.5 billion in June, up from Sh829.50 …

Zimbabwean banks sitting on billions in hard currency but they are wary of lending it.[Photo/Newealth]

The banks themselves have little confidence in each other which is demonstrated by the absence of a real interbank lending market.

Perhaps most striking is the high degree of regulatory risk. Regulatory risk is one where a change in laws and regulations will materially impact a security, business, sector, or market. A change in laws or regulations made by the government or a regulatory body can increase the costs of operating a business, reduce the attractiveness of an investment, or change the competitive landscape in each business sector. In extreme cases, such changes can destroy a company's business model.…

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