I was very shocked to see this on a brothers wall. entrepreneur
HOW BAD IT IS….
I met up with a friend of mine, who is a local businessman; and he normally import goods from Singapore.
The impact of foreign exchange reserve shortage we are experiencing is hitting hard on most businesses and what follows here are account of facts my friend shared with me. He tells me that some two weeks ago TT limits for all commercial banks were strictly at K25, 000.00.
He received a quotation for some items from Singapore valued at K 300,000. 00, he infornmed his supplier that he’d be making payment in parts of 12 x K25, 000.00.The Singaporean supplier, basing on trust and understanding our current situation on Forex, he accepted that arrangement
And so my friend went off to the bank for the first part of the payment not knowing that K25, 000.00 will have to go to treasury, to avoid delays he was told by the bank to make a TT at the value K24, 000. 00 which he did and later updated his supplier. This was on the 21/04/2016
Last Tuesday (26/04/2016) he went back to the same bank to send another K24, 000. 00 (2/12) but this time the bank had to tell him, ‘Sorry Sir we cannot send K 24, 000. 00. You can only send K 15,000. 00 or less, but if you still want to send K24, 000. 00 then you have to check on Thursday (28/04/2016).
On Monday (2/5/2016) the TT limit dropped again to K15,000.00 and today it has gone further down to K10,000.00.
What will it be like in the coming weeks?
With such realities, how can businesses survive?
Where are we heading?