Indonesia’s rupiah led emerging-market currencies higher before a report on the U.S. economy and as China signaled it will take more steps to support growth. Developing-nation stocks traded little changed.
The rupiah headed for the longest rally since October after the government announced its eighth policy package. The offshore yuan rose the most in a week. Malaysia’s Axiata Group Bhd. paced gains for emerging-nation telecom companies after buying a stake in a Nepalese phone carrier. True Corp., a Thai phone stock, rebounded from the steepest slump in 11 months. Taiwan’s 10-year government bond yield fell to a record-low.
China’s government said monetary policy must be more “flexible” and fiscal policy more “forceful” to stem slowing growth in an economy that many emerging countries count as their biggest trading partner. Developing-nation currencies climbed for a third day, extending last week’s gains as bets that the Federal Reserve will raise interest rates gradually bolstered demand for riskier assets. A report Tuesday is forecast to show the U.S. economy grew less than previously estimated in the third quarter.
“Chinese stimulus is positive for the economy and many investors are gauging the general impact of any new measures as well as the longer-term impact of the Fed rate increase,” Attila Vajda, managing director of Project Asia Research & Consulting Pte., a Singapore-based advisory firm, said from Ho Chi Minh City. “The holiday season is impacting liquidity.”
The MSCI Emerging Markets Index was little changed at 791.54 at 12:27 p.m. in Hong Kong, trading below its 50-day moving average for almost a month. The stock benchmark has fallen 17 percent this year, set for the worst annual performance since 2011. The average valuation of companies on the gauge is 11.1 times estimated 12-month earnings, a 29 percent discount to the MSCI World Index, which has slid 4.1 percent in 2015.
A gauge tracking 20 emerging-market currencies rose 0.1 percent. The rupiah strengthened 1.1 percent, its fourth day of gains. Under a policy package announced on Monday, private-sector companies will be allowed to build oil refineries as long as they sell the end product to state-owned PT Pertamina. The nation will also scrap import taxes on aviation spare parts to support that industry.
The offshore yuan added 0.23 percent, according to data compiled by Bloomberg. South Korea’s won rose 0.2 percent in a two-day increase. “China’s stimulus is highly likely to support the won, just as the yuan halted its drop,” said Jeon Seung Ji, a currency analyst at Samsung Futures Inc. in Seoul. “The dollar’s strength is losing steam when Korean exporters keep selling the dollars.”
The yield on Taiwan’s 2025 bonds dropped three basis points to 1.015 percent, after earlier declining to 1.011 percent, an intraday record low for benchmark 10-year notes, Taipei Exchange prices show. The five-year yield fell two basis points to an unprecedented 0.60 percent. Disappointing economic data fueled speculation the central bank will ease monetary policy again after delivering two interest-rate cuts this year. Bonds surged last week after the central bank lowered its benchmark rate for the second straight quarter.
Five out of 10 industry groups in MSCI’s emerging-markets measure rose, led by telecommunication and health-care shares, while technology companies declined. Axiata climbed 2.8 percent in Kuala Lumpur after agreeing to buy a 80 percent stake in Ncell for $1.4 billion. True Corp. advanced 2.3 percent, halting a four-day slump.
The Shanghai Composite Index fell from a three-week high, dragged down by losses for the best-performing industry groups this year, as investors weighed growth measures from the nation’s top economic conference. The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong fell 0.4 percent. Equity gauges in Malaysia, Indonesia, Philippines gained at least 0.2 percent.
Naira Gained Slightly at I&E Forex Window to N412.81/$US
Despite the Nigerian Naira trading at a record-low across the nation’s unregulated black market, the embattled currency opened slightly higher at N412.81 to a United States Dollar on Monday at the Investors and Exporters Forex Window, representing an increase of 0.08 percent when compared to the N412.88 it closed on Friday.
The improvement in Naira value was after the Central Bank of Nigeria (CBN) directed all depoisit money banks operating in the country to freeze bank accounts linked to Oniwinde Olusegun Adedotun, the founder of www.abokfx.com, a forex rate publishing platform.
Godwin Emefiele, the Governor, CBN had blamed black market and bureau de change operators for the constant plunge in Naira value against its global counterparts and insisted that forex rates remained the apex bank stipulated rates and not the unregulated rates imposed by speculators and hoarders and published to the public by Abokifx and other business platforms.
“There was a particular time I asked our colleagues to call the so-called owner of abokiFX, that we want to understand his model and how he came about advertising those rate, we find him as someone, a Nigerian who lives in England and conducts this nefarious activity on our economy.
“It is economic sabotage and we will pursue him, wherever he is, we will report him to international security agencies, we will track him, Mr Oniwinde, we will find you, because we cannot allow you to continue to conduct an illegal activity that kills our economy.” Emefiele said.
The governor further stated that the website was set up primarily manipulate and speculate forex rates. He said “they get naira loans, use to purchase dollars, take a position, change the rate over a given period, sell the dollars they purchased and make a profit, this is completely illegal, unacceptable and we will pursue them.”
On Friday, the last time Abokifx published unregulated forex rates, Naira was qouted at N570 to a United States Dollar while the British Pound and the Euro were quoted at N770 and N655, respectively.
U.S Dollar Jumps to Three Weeks High on Better Than Expected Retail Sales
The United States Dollar rose to a three-week high after data from the Commerce Department showed that the U.S retail sales rebounded in the month of August despite falling consumer confidence.
The US Dollar Index rose to 93.40 on Monday to extend Friday breakout above the 93.00 key resistance level.
U.S retail sales jumped to its highest in five months in the month of August to beat 0.8 percent decline predicted by experts. Retail sales grew by 0.7 percent in August to increase the odds of the US Federal Reserve announcing tapering during next week’s Federal Open Market Committee (FOMC) meeting.
“U.S. consumption is not slowing as quickly as it appeared a month ago despite the fading stimulus, and the Delta variant did not much affect the industries feeding into retail sales,” said Chris Low, chief economist at FHN Financial in New York. “The economy continued to hum in August.”
Against the Japanese Yen, the U.S dollar strengthened to 109.48 from 109.91 attained on Friday on broad-based selloff during London trading session, while heavy selloff plunged British pound against the U.S dollar 1.36610 before reboundling slightly to 1.36946.
The Euro dropped from 1.17883 recorded on Friday to 1.16995 on Monday during London trading session.
Naira Exchange Rates Today, Friday, September 17, 2021
Naira continued its downward trend against other currencies on Friday as it plunged to N570 against the United States Dollar at the black market. The local currency traded at N770 and N655 to British Pound and Euro, respectively.
Persistent forex scarcity amid a series of in effective policies have made access to forex impossible for most of businesses that operates in largely import dependent African biggest economy.
Nigeria’s forex reserves, the means in which the nation, service its dollar consuming 200 million population has been on a decline in recent weeks despite crude oil trading at over a year high of $73 a barrel. Some of the factors that have crippled the ability of central bank to cushion the economy with enough forex is low crude oil production, partly due to production cap, weak local manufacturing sector that has made the nation a huge import dependent economy, the ongoing crisis between herders and farmers, rising costs even with falling inflation, etc.
At the bureau de change section, Naira exchanged at N565, N775 and N655 to a United States Dollar, British Pound and Euro common currency.
The Central Bank of Nigeria (CBN) had stopped the sale of forex to the bureau de change operators to plug forex leakages and curb activities of criminal elements, the decision has worsen forex availability. See other forex rates below.
Naira Black Market Exchange Rates
Morning * Midday** Evening *** Final Rates
Bureau De Change Naira Rates
Central Bank of Nigeria’s Official Naira Rates
|9/16/2021||SOUTH AFRICAN RAND||28.3101||28.3446||28.3792|
N.B: These tables are updated three times a day.
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