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BOJ to Intervene as Yen Surges to 18-Month High Against Dollar

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Yen surges to 18 months high against the dollar

After gaining 492 pips against the dollar this month, it is important to note that there is possibility of BOJ intervening to restrain Yen gains because one, it’s disrupting Prime Minister Abe’s efforts to attain 2 percent inflation target, two, at 18 months high against the dollar, it is right to say that stronger yen will hurt the competitiveness of Japanese exports going forward.

According to Shusuke Yamada, a Bank of America Merrill Lynch strategist, who predicts that the yen could climb another 8 percent this year said “at 105, there’s a realistic probability of intervention.”

Also, finance Minister Taro Aso said on Friday “that rapid fluctuations, whether strengthening or weakening, are undesirable. Recent movements have been one-sided and action will be taken as needed.”

Even Bank of Japan Governor, Haruhiko Kuroda during quarterly meeting of Bank of Japan’s branch managers, in Tokyo on Thursday said they are watching currency market.

What this means is that BOJ will sell-off yen at a price considered undesirable for the economy, it could be at 105 or even below 100. This is why yen traders should pay attention to fundamental henceforth.

However, there is another issue prohibiting BOJ to intervene without G-7 approval according to agreement agreed upon by members of G-7 in February.

“As long as Japan belongs to G-7, any intervention will require approval from the U.S.,” which would be “unjustifiable” until 105,” said Ikeda, the head of Japan foreign-exchange research at Nomura Securities.

Others have argued it would take a rally to 95 for any intervention in the current environment.

Japan last sold the yen in 2011, in a multilateral intervention following Fukushima earthquake.

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

Black Market Dollar to Naira Exchange Rate Today, February 29th, 2024

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 NGN in the black market, also referred to as the parallel market or Aboki fx.

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NAIRA - Investors King

As of February 29th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,480 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 N1,600 and sell it at N1,590 on Wednesday, February 28th, 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.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,480
  • Selling Rate: N1,470

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Naira

Black Market Dollar to Naira Exchange Rate Today, February 28th, 2024

As of February 28th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,600 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

on

New Naira notes

As of February 28th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,600 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 N1,530 and sell it at N1,520 on Tuesday, February 27th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,600
  • Selling Rate: N1,590

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Forex

Nigeria’s Move $26 Billion Through Binance in One Year

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Binance - Investors King

Following the decision of the Central Bank of Nigeria (CBN) to raise the interest rate by 400 basis points to 22.75%, the Governor of the apex bank Olayemi Cardoso has heaped the blame on activity of Nigerian on Binance.

According to the governor, Nigerians traded and moved $26 billion through Binance in the last year.

“In the case of Binance, in the last year alone, $26 billion has flowed through Binance Nigeria from sources and users that we cannot adequately identify,” he stated.

Cardoso highlighted that this activity has contributed to the nation’s widening foreign exchange rate and subsequently affected Nigeria’s economy.

He assured that the CBN would address all pending verified forex requests and emphasized the bank’s commitment to safeguarding investors’ interests.

Cardoso mentioned that the CBN is collaborating closely with relevant government agencies to prevent market manipulation and optimize its performance.

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