‘You’ll suffer losses’ – Gachagua warns traders hoarding dollars as shilling gains

Thursday, February 15th, 2024 18:01 | By
'You'll suffer losses' - Gachagua warns traders hoarding dollars as shilling gains
From left Deputy President Rigathi Gachagua, former Nigeria President Olusegun Obasanjo and President William Ruto during the commissioning of the Maragua Bulk Water Supply and Irrigation Project in Murang'a Count on Thursday, February 15, 2024. PHOTO/PCS

Deputy President Rigathi Gachagua has once again cautioned traders hoarding dollars to exchange them or risk incurring huge losses as the shilling continues to make significant gains against the US dollar.

Speaking in Kandara Constituency, Murang'a County, on Thursday, February 15, the country's second-in-command expressed his confidence that the dollar will continue to depreciate against the shilling due to President William Ruto's economic interventions.

"Na unajua kwa sababu mimi ni mtu wa kuongea ukweli niliambia wakenya mambo ya ukweli. Nikawaambia nikikaa pale na rais nikiona vile anapanga uchumi, wale walikua wameficha dollar nyumbani nikawaambia waende watoe dollar wauze. Hawakunisikia wakasema wakae na dollar kwa nyumba. Raisi amepanga kazi na dollar imeteremka," Gachagua stated.

Loosely translated; "And you know, because I'm someone who speaks the truth, I told Kenyans that when I sit there with the president and see his plans for the economy, those who had hoarded dollars at home should go and sell them. They didn't listen; they said they would keep the dollars at home. The president has made plans, and the dollar has gone down."

He suggested that there was a possibility of the dollar dropping to Ksh100 against the shilling.

"Sasa wale wako na dollar wanakimbia bwa benki kuuza haraka... huyu raisi vile amepanga hii dollar muuze leo, kesho na kesho kutwa. Msipouza mtaenda hasara kubwa. Hii dollar vile naona raisi amepanga itafika mia moja," he added.

Loosely translated; "Now those who have dollars are rushing to the bank to sell quickly... sell this dollar today, tomorrow, and the day after tomorrow. If you don't sell, you will incur significant losses. The way I see it, the dollar will drop to Ksh100."

The surprising gain on Wednesday lifted the shilling to its strongest level since November last year, closing the day at Ksh153.75. This was the strongest single-day gain in 12 years.

The shilling further made significant gains on Thursday, trading at about Ksh145.50.

The increase in value of the local currency is believed to be a result of investor confidence following substantial inflows received by the government to settle the $2 billion Eurobond.

Gachagua had cautioned local tycoons to release their dollars last year as the shilling continued weakening to hit Ksh134 against the green buck on April 13, 2023.

The second in command was speaking at Mombasa port, after receiving two oil tankers that had brought into the country 172,191 tonnes of petrol, diesel, and aviation fuel.

“We ask all those Kenyans, businesspeople, investors, who have been hoarding US dollars for the purpose of speculation, please offload those dollars to the market. It is very honest advice from a truthful man,” Rigathi Gachagua stated.

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