African Currencies Suffer Losses Against the US Dollar

Statistics from African Alliance now indicate that the Kenyan Shilling has been relatively more resilient against the dollar as compared to other currencies this year even with the 13 percent depreciation that has the Shilling trading at 103 against the US Dollar.

According to the data, the Ugandan shilling has weakened by 22.4 per cent this year against the Dollar while the Tanzanian currency depreciated by 18.6 per cent to the Dollar in the same period while the Kenyan Shilling has depreciated by 13 percent.

According to the data from Africa Alliance, the net effect on the two countries will make it more expensive for Ugandans and Tanzanians to import Kenyan goods, given the fact that they will find it more expensive and harder to acquire Dollars to pay for goods from Kenya.

On the other hand, separate data from the Kenya National Bureau of Statistics (KNBS) shows that Kenya sold goods worth Sh 12.2 billion to Tanzania in the first six months upto June, down from Sh 17.7 billion in a similar period last year.

More so, exports to Uganda rose to Sh26.6 billion over the six month to period to June  compared to Sh23.8 billion in 2014, although year-on-year the value of exports has fallen since 2011—when they stood at Sh75.9 billion compared to Sh60.7 billion in 2014.

The Zambian Kwacha is down by 21 per cent against the US dollar, while the South African Rand and Nigeria’s Naira are down by 10.8 and 8.2 percent against the  US Dollar respectively.

One of the reason that has been cited for the general weakening of the Kenya Shilling is the widening current account deficit for Kenya.