Trending
- Africa’s food crisis deepens as one billion people unable to afford heathy diet
- Dangote Refinery breaks ground, set to process one million barrels in debut
- President Ruto’s relentless efforts to boost Kenya’s agricultural productivity
- Africa will need pragmatism, not idealism, to achieve a just energy transition
- AfDB warns of $25 billion drain on Africa with new EU carbon tax
- Shareholders pressure Glencore spin off and disposal of coal business in two years
- Airtel Africa launches new data centre business Nxtra
- How Africa can cushion the blow of China’s economic slowdown
Browsing: US dollar
- Kenya Power attributes its loss to the impact of a declining currency and a strengthening US dollar amid skyrocketing electricity costs.
- The company’s unrealized foreign exchange losses on power purchases increased from $7.3 million in the last financial year to $34.9 million.
- During the year, power purchases rose from $770 million to $943 million, primarily due to unrealized foreign exchange losses. Finance costs increased significantly by 89%, from $83 million to $158 million, mainly driven by the depreciation of the Kenyan shilling.
Utility Kenya Power has reported a net loss of $21 million for the year ending June 30, 2023, attributed to the impact of currency fluctuations and the strengthening of the dollar amidst soaring electricity costs.
During the review period, unrealized foreign exchange losses on power purchases increased from $7.3 million in the previous financial year to $34.9 million. This was a result of the depreciation of the Kenyan …
For many Kenyans, life was unbearable during former President Uhuru Kenyatta’s reign. But just one year after President William Ruto came to power, life is getting more onerous. High taxation, the depreciation of the shilling against the dollar, and record-high fuel prices have highlighted the last few months. This has painted a grim picture of Kenya’s future and shattered citizens’ hopes for economic reinvigoration.
On September 14, 2023, the Energy and Petroleum Regulatory Authority (EPRA) announced record-high fuel prices for the September-October regulation cycle. A litre of super will now retail at Kes 211.64, diesel at Kes 200.90, and Kerosene at Kes 202.61. This represents an increase of Kes 16.96, 21.32, and 33.13, respectively, in the new prices announced last midnight.…
In May 2023, Zimbabwe released a gold-backed digital currency for peer-to-peer and business transactions. It acted as a store of value as the Zimbabwean dollar continued its steep depreciation. International gold prices controlled by the London Bullion Market Association will dictate the local pricing of Zimbabwe’s digital currency tokens.…
On 15 May, President William Ruto nominated Kamau Thugge as the new governor of the Central Bank of Kenya (CBK). If the Senate and the National Assembly ratify the appointment, Thugge will begin his first term as the CBK governor in mid-June. He will replace the incumbent Patrick Njoroge who assumed office as CBK governor in 2015.
The nomination of Thugge comes at a pivotal time for the Kenyan economy. Kenya’s inflation remains high at almost 8 per cent. The Kenyan shilling has also hit all-time lows against the US dollar. Thus, the monetary policies from the CBK will most likely come in handy in the coming months. But what makes Thugge the perfect fit for the crucial role of Kenya’s top banker?…
In recent months, the discourse about de-dollarisation has gained momentum. The sanctions against Russia have exposed the danger of over-dependence on the US dollar in international trade. The recent foreign exchange challenges have also recharged the growing efforts to bolster other currencies.
De-dollarisation could soon become a reality. A BRICS substitute to the dollar could enjoy high prospects for success, a former White House adviser, Joseph Sullivan, has noted. Sullivan served as a staff economist at the White House Council of Economic Advisers during the Trump administration. According to him, a potential BRICS currency poses a unique threat to the dominance of the US dollar in international trade.…
The global financial landscape has undergone a remarkable transformation in recent times. Remarkably, the issue of the de-dollarization of international trade is slowly but steadily gathering momentum. A rising trend toward de-dollarization is challenging the longstanding supremacy of the United States in the international financial system. As the dominant global reserve currency, the US dollar remains pivotal in international trade, investment, and financial transactions.…
Currently, Africa is over-exposed to the impact of the US Dollar. Thus, African nations must either act individually or together to mitigate these effects. Dollar strength bursts are cyclical. Therefore, there should be enough time to implement efforts before the next one occurs. African governments have recognized the harm done in the previous year and should work round the clock to find a lasting solution.…
