Discuss the implications of the measures

Assignment Help Finance Basics
Reference no: EM132601530

It all started with the depreciating shilling and kenyans watched asbthe shilling continued to weaken against the dollar.This was later to be followed by rising inflation and nobody could exactly tell what was wrong. Some blamed it on the fuel (high cost of imported oil) while others blamed the central bank accusing the governor of incompetence and inability to control the shilling (tame the weakening shiiling ).Then it was time to act ,serious drastic measures were adopted.

1. The central bank suspended the dollar transactions by the commercial banks whom it accused of hoarding the dollarfor speculative purpose and instead decided to carry out the transactions.

2. The central bank increase the base lending rates.

Required:

Discuss the implications of the above measures and how they have succeeded to taming the shilling as well as reducing inflation

Reference no: EM132601530

Questions Cloud

What you know about pay structures : Now, based on the video's information and discussion, you get to decide 3 important factors (or take-aways) you want the executive team to know about pay.
What competencies were you able to develop in researching : What competencies were you able to develop in researching and writing the course Comprehensive Project? How did you leverage knowledge gained in the intellipath
Provide an entity relationship model : Analyze the university's requirements and provide a proposal to organize all the required data elements - describe the data structure that will store all data
National labor relations act : Discuss some employer tactics used to prevent or minimize union membership growth prior to the passage of the National Labor Relations Act in 1935.
Discuss the implications of the measures : Discuss the implications of the above measures and how they have succeeded to taming the shilling as well as reducing inflation
What is the weighted average cost of capital of the company : The GiN Corp.is expected to pay a dividend 0f $3 which is expected to grow at 2% for a foreseeable future.The stock of the Gin Cor
What are the different component of capital : A. What are the different component of capital and what is the cost of each of them?
Calculate the allocation of profit : Calculate the allocation of profit for 2020 and 2021, assuming profits are divided as follows: (A) The partners have no agreement
Who has the best chance of getting out of the contract : Under UCC 2-302, who has the best chance of getting out of the contract due to unconsionability? Which approach do you think is more ethical?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the firms average collection period

Milwaukee Surgical Supplies, Inc. .Milwaukee Surgical Supplies, Inc., sells on terms of 3/10, net 30. Calculate the firm's average collection period

  Situation to qualify for hedge accounting?

Why would you expect this situation to qualify for hedge accounting?

  What is the final volume

Assuming that the reaction runs to completion (and that you can ignore the volume from any liquid that is formed), what is the final volume?

  Disparities between the percentages of african

Which of the following might account for the disparities between the percentages of African, Hispanic, and Asian Americans among the general population and their smaller representation in management positions?

  Check the status of your policy and levy payment

You want to check the status of your policy and levy payments. How could you find out if your policy was current?

  What is the average ipo underpricing

By what amount does the average IPO appreciate the first day; that is, what is the average IPO underpricing?

  Explain the steps the australian company like woolworth

Explain the steps the Australian company like Woolworth/Coles taken on how it distribute/circulate its financial/annual report to its shareholder?

  If the balance sheet is a snapshot how would you describe

if the balance sheet is a snapshot how would you describe the income statement and the statement of cash

  Value of the present collection experience

Using NPV calculations, show the present value of the present collection experience.

  A the relative expected return on dollar assets increases

1 as the relative expected return on dollar assets increases foreigners will want to hold more assets and less

  The shopping bag is a thrift store that sells used clothing

1.the shopping bag is a thrift store that sells used clothing. assume that variable costs associated with selling each

  Determine the coefficient of variation for rate of return

Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the coefficient of variation for the rate of return on Phoenix stock.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd