Editorial

FEAR NOT THE PURCHASING POWER

Odongo Odoyo

Topical Commentary


With Odongo Odoyo

The mainstream media remained awash with the introduction of the (SSP) one thousand note in the country’s economy. It was good news indeed to the business community.  But the consumers felt a bit itchy because of the fear that traders might just take the advantage and increase prices. The fear is based on purchasing the commodities and the traders or business people citing lack of change.. As we argued this point out, l did not take it as a major cause of concern and told my companion just that. I was convinced that it was made easy to carry large amount of cash at one point without any suspicion or danger from the notorious gang, if they still exist, raiding and harassing the public at will. It was made possible for one to easily possess “big money” without much ado. But my friends were not convinced and told me to leave it to economists to translate to the public the possible prospect of the big note.I am an open minded all the time and this time around l agreed with my friends that we should seek the interpretation of the effects of the notes in the economy. It is possible that the fear by consumers as demonstrated would be real or not. There are people outside there who wait for any possible opportunity to come out with so many theories which borders only on negativities. They do not see anything god done by someone. These are the class of people who have started digging holes into the introduction of the note even before being a day old in circulation. Many a time the leadership has advised against poking holes where there is none. Rumour-dens are those places that must be watched because what are manufactured in these places are not good for the existence and togetherness of the society. The important thing right now is to tell the business community not to hike prices because of the introduced one thousand currencies. They should not hike prices of basic commodities equating the same with USD rates in the black market. The success of the circulation of the introduced money will equally depend on the socio-economic and more importantly, political goodwill. Every public institution should do its work to help improve and complete the development agenda. This where the Central Bank should join hand and collectively participate without giving a hearing to side-road talks that could only derail their program. The bank must always remain in the forefront by informing the public what they need to know and when they need to know it. Yes mistakes are made but before reaction, there must be deed and intense focus without making any intended mistake. Let the money market dictate the value of the introduced currency but it should not be at the mercy of few individuals. The bank gave a positive report of the mop-up exercise. Let us trust their words on this.

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