Business

Possible Consequence of Greece ‘No’ Vote

Published

8 years ago

July 13, 2015

Early in 2015, Alexis Tsipras, the Prime Minister of Greece engaged creditors to a game of chicken consequently damaging the rally of European stock that has added over $ 2.17 trillion in share prices in the first quarter of the year. According to equity managers familiar with the situation, the situation shouldn’t have gotten to this point of almost parity with U.S dollar.

David Joy, the Principal Market strategist with Ameriprise Financial Inc., which oversees $ 815 billion, said: “that at the moment, there is no possibility of having a ‘no’ priced vote. He added that in case one is obtained, there will be another row of downhill instability more than what was obtained”.

On 29th June, the 50 index Euro Stock went downhill by 4.2 % and at the same time, the 500 Standard Index got its largest fall. This was more than one year following the sudden referendum which was called by Tsipras regarding the proposed austerity measures imposed by Greek creditors. Concerning the vote, the nation will now be a step nearer to euro’s exit, the possibility that pushed equity volatility to a three years peak.

On Friday, a poll that was commissioned by the news at Bloomberg revealed that more than 43 % of Citizens in Greek are expected to vote against severe conditions whereas 42.5 % will support the affirmation. Even while the rejection support declined by 52 % just a week ago, the Greece crisis enhanced the efforts of the Central Bank of Europe to raise the currency’s confidence.

75% Chance

The AG at Credit Suisse Group estimated that 75 % is the possibility of Greece leaving the euro with a ‘no’ vote. The biggest hits were taken by Italy and Spain after the announcement of the referendum dropping the most in the developed markets to more than 5% losses. In just 5 days, stock swings jumped by 21%. Today, the 50 Euro Stoxx is down by 10% from a high of 7 years in April.

The reaction in the market has not been as bad as it was in 2010 when the first bailout was received by Greece. In less than 6 weeks, the 50 blue-chip companies in euro went to a 17 % low during that year.

Short Lived

According to Goldman Sachs Group Inc. on 2nd July, there will be short-lived volatility of equity due to rejection of terms of the bailout. According to them, this scenario may trigger investors to purchase equities in Spain, Italy and Germany.

Many Mistakes

In the views of David Kelly of JP Morgan Funds that manages $800 billion, the situation went out of hand due to mistakes from both sides. Kelly added that “by forcing the Greek people to an austerity level of managing in difficulty, Europeans are not only unfair but also unkind”.

If the bailout terms are rejected by voters, it would be impossible for Greece to immediately leave the euro. To keep afloat its financial system, it would start printing its own currency. The country may run out of cash and be forced to make a 3.5 billion euros bond payment to the ECB.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Business

Nigeria and China Explore Ways to Enhance Bilateral Relations as Trade Value Drops by N37.3bn in 2022

Published

9 hours ago

March 22, 2023

Samed Olukoya

Nigeria and China have long maintained a cordial trade relationship, but recent statistics show a decline in bilateral trade by N37.3bn ($81m) to $219m in 2022 from the previous record of $300m in 2021.

Despite this decline, both countries are making efforts to enhance bilateral relations and explore ways to increase trade value.

Wang Yingqi, the Minister and Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, led a delegation from the Chinese Chamber of Commerce to the Executive Secretary of the Nigerian Investment Promotion Commission in Abuja. During the meeting, he emphasized the need to improve bilateral relations and increase trade value.

Yingqi stated that the Chinese government has invested in the Lekki Free Trade Zone through a Public-Private Partnership with the Nigerian and Lagos State governments.

He further highlighted that the total investment from Chinese companies to Nigeria in 2022 was around $219m, while in 2021, it was $300m.

Responding to the delegation, the Executive Secretary of the Nigerian Investment Promotion Commission, Saratu Umar, reiterated the federal government’s commitment to deepening business partnerships with the Chinese government.

She emphasized the need for Nigeria to start exporting finished goods to China rather than just importing raw materials.

Umar stated, “We want the Chinese business environment to identify areas of interest, whether it is agriculture or solid minerals, so Nigeria can integrate it into the Investment Masterplan.”

Business

Dollar to Naira Exchange Rate Today March 22, 2023

Published

11 hours ago

March 22, 2023

Investors King

As of March 22, 2023, the dollar to naira exchange rate is 1 USD to 755 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦755, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦755 and ₦750 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N755 and sold for N750.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN)	Black Market Exchange Rate Today
Buying Rate	750
Selling Rate	755

Investors King understands that although the dollar to naira opened at N755 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Wednesday, March 22nd, 2023, individuals in the black market purchased one US dollar for N750 and sold it for N755. This shows that the value of the Naira has declined slightly to Wednesday, March 21st, 2023, when the local currency was exchanged at N748 and sold it for N753.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

Company News

Unilever Nigeria to Reposition Products For Expansion

Published

1 day ago

March 21, 2023

Blessing Akorowosi

A renowned consumer goods manufacturer, Unilever Nigeria Plc has disclosed plans to reposition its products and expand its business for sustainability.

Unilever Nigeria Plc produces and markets consumables that include foods, household, beauty, cleansing amongst other goods, Investors King reports.

In a corporate notice signed by its Secretary, Abidemi Ademola sent to the Nigerian Exchange Limited, the company stated that its home care and skin cleansing markets will cease to exist while a rebranding takes place for increment in profit.

According to the company, the change in its business model became expedient to fast track the organisation’s growth and further satisfy the needs of their customers, employees, shareholders and other stakeholders.

Ademola explained that the new strategy would involve digital measures to simplify the business process while chances of devaluation will be avoided and reduced in the market upgrade.

The company had already visualised the extinction of the home care and skin cleansing categories in 2023 for the general growth of the firm and particularly to build a sustainable business.

The statement read in part, “this will involve repurposing the portfolio by exiting the home care and skin cleansing categories to concentrate on higher growth opportunities.

“Strengthening business operations with measures to digitise and simplify processes; and focusing more on business continuity measures that reduce exposure to devaluation and currency liquidity in our business model.”