To ensure that Kenyans reap the benefits of economic growth, Central Bank has pursued deliberate policies that have achieved relatively stable and low underlying inflation, even with supply shocks, the current inflation bout is related more to supply constraints rather than monetary overhang, stable exchange rate even with some minor volatilities, a strong balance of payments position, low and stable interest rates, and substantial inflows of both official capital and foreign direct investment.
Correspondingly, China's annual demand for banknote substrate is around 30,000 tonnes, some 30 per cent of annual global substrate demand. The picture is broadly the same in India and Indonesia, where strong cultural factors also underpin the demand for cash. Together, China, India and Indonesia, make up an estimated 55 per cent of global consumption of banknote substrate.