As a consequence of this uncertainty about the speed of adjustment, I use a range of estimates - a tenyear moving average to capture the case of very sluggish adjustment and a three-year moving average to illustrate a more rapid adjustment. I view this as plausible range, but as I noted, it is difficult to identify the precise speed of adjustment within this range.
More importantly, the CSD provides a new and easy way to invest in Government securities and will therefore be beneficial to the Diaspora. The Kenyans abroad will be able to register CSD accounts online, from wherever they are, thereby mitigating the current inconvenience of having to come physically to the Central Bank.