Forex

Emerging-Market Currencies Surge on China Stimulus Hopes

Published

8 years ago

December 22, 2015

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.”

Bonds

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.

Bloomberg

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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, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

9 hours ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

1 day ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.