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Dollar Jumps to 7-Week High as June Fed Rate Hike Seen in Play

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Dollar

The dollar rose to a seven-week high after Federal Reserve meeting minutes boosted speculation that the central bank will raise interest rates as soon as June.

The U.S. currency extended gains against most of its major peers after the release of policy makers’ deliberations indicated they are moving closer to further tightening after raising rates for the first time in a decade last December. Emerging-market currencies slumped on the prospect of higher U.S. interest rates, with the Brazilian real, South Africa’s rand and the Russian ruble pacing declines.

“The greenback should be bid here,” said Bipan Rai, executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce in Toronto. “The minutes suggest that the odds of a June hike or even a signal in June for a July hike are more likely than the market was prepared for.”

 The greenback has advanced for the past two weeks in its longest run of gains since January as traders boosted expectations for the U.S. central bank to raise borrowing costs. The currency has pared its 2016 loss to 3 percent amid comments from regional Fed presidents that at least two rate increases this year may be warranted.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 peers, climbed 0.8 percent as of 5 p.m. in New York, reaching the highest level on a closing basis since March 28. The U.S. currency added 0.9 percent to $1.1216 per euro and advanced 1 percent to 110.19 yen.

“This is really going to give the market some renewed confidence in the dollar,” said Lennon Sweeting, a corporate dealer in Toronto at the foreign-exchange transfer company USForex Inc. “We saw a couple of nice comments from the Fed, they recognize the fact that the market’s been wanting to hear a clear, concise message.”

Hedge funds reduced bets for the U.S. currency to weaken versus eight other currencies last week, according to the Commodity Futures Trading Commission. After surging more than 20 percent against the euro in the past two years, strategists project the dollar staying near its current level of $1.12 per euro through year-end.

The likelihood of the Fed raising rates at its June 14-15 meeting more than doubled from Tuesday to 32 percent, while the chances of a move by September rose to 62 percent from 47 percent the previous day, according to data based on fed fund futures compiled by Bloomberg.

Fed officials “have been building the case for a potential June hike over the past few weeks, with more hawkish undertones in their speeches,” said Minh Trang, a senior foreign-exchange trader at Silicon Valley Bank in Santa Clara, California. “They may not want to make the mistake of waiting too long, only to see the environment weaken and lose an opportunity to hike.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Naira

Naira Exchange Rates Today, Friday, September 17, 2021

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Naira Exchange Rates - Investors King

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

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
17/09/2021 560/570* 763/770* 647/655* 70/75 430/440 310/330
16/09/2021 560/570 763/770 647/655 70/75 430/440 310/330
15/09/2021 552/562 754/760 640/648 70/75 430/440 310/330
14/09/2021 550/557 754/760 640/645 70/75 430/440 310/330
13/09/2021 543/550 742/750 630/636 70/75 425/435 310/330
10/09/2021 538/545 738/745 630/636 70/75 420/432 310/330
09/09/2021 532/540 730/740 627/632 70/76 419/430 310/330
08/09/2021 528/535 723/730 623/629 70/75 419/426 310/330

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
17/09/2021 555/565 760/775 640/655
16/09/2021 548/555 753/765 635/645
15/09/2021 548/555 750/761 635/645
14/09/2021 548/555 750/761 635/645
13/09/2021 535/550 737/745 630/636
11/09/2021 530/547 735/745 630/635
10/09/2021 530/547 735/745 630/635
09/09/2021 528/538 730/738 625/630
08/09/2021 525/531 718/730 616/625

Central Bank of Nigeria’s Official Naira Rates

Date Currency Buying(NGN) Central(NGN) Selling(NGN)
9/16/2021 US DOLLAR 409.57 410.07 410.57
9/16/2021 POUNDS STERLING 566.763 567.4549 568.1468
9/16/2021 EURO 482.0229 482.6114 483.1998
9/16/2021 SWISS FRANC 442.6827 443.2231 443.7635
9/16/2021 YEN 3.7434 3.748 3.7526
9/16/2021 CFA 0.7191 0.7291 0.7391
9/16/2021 WAUA 583.3071 584.0192 584.7313
9/16/2021 YUAN/RENMINBI 63.5338 63.6118 63.6898
9/16/2021 RIYAL 109.2012 109.3345 109.4678
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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Forex

CBN Goes After Abokifx, Freezes Bank Accounts for Publishing Black Market Rates

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Abokifx - Investors King

The Central Bank of Nigeria (CBN) has directed deposit money banks to freeze all the bank accounts associated with AbokiFX and its owner, Oniwinde Olusegun Adedotun, for publishing foreign exchange rates other than the rates determined by the CBN.

The apex bank had warned publishers to desist from publishing forex rates determined by the unregulated parallel market, popularly known as the black market, where speculators and hoarders largely manipulate the nation’s foreign exchange rates as seen in recent weeks.

In an email to publishers by the NGN Project, presumably acting on behalf of the CBN, the organisation had quoted section 11 sub-section 1(c) and 2 (a,b) of the National Economic Intelligence Committee Act of 2004 that stated “it shall be an offence for any person, association of individuals or body corporate (whether public or private) to publish or cause to be published exchange and interest rates other than the rates determined by the Bank from time to time.”

The Act stipulated N100,000 fine or imprisonment for a term of two years or both for individual and N500,000 fine and suspension or revocation of certificate of registration or cerificate of incorporation for association or individuals or corporate body.

This was after the central bank halted the sale of forex to bureau de change operators after accusing them of aiding the activities of criminals at the unregulated black market and been a channel for illicit financial flow. The move, which resulted in chronic forex scarcity and all time high foreign exchange rate, has forced the apex bank to go after publishers in effort to discourage people from patronising the black market and to force Nigerians to reject the unreasonable exchange rate of N567 to a United States Dollar and approach their banks for N412 to N415 per US Dollars.

Despite covid-19 challenges and limited forex generation, the apex bank has continued to support the Nigerian Naira and go after forex manipulators.

The NGN Project had described AbokiFX.com and its owner has criminals ‘committing crimes against the Nigerian state’. See the email CBN sent to publishers below.

 

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Naira

Naira Exchange Rates Today, Thursday, September 16, 2021

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Naira - Investors King

Naira continued its downward trend against other currencies on Thursday 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 N555, N765 and N645 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

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
16/09/2021 560/570 763/770 647/655 70/75 430/440 310/330
15/09/2021 552/562 754/760 640/648 70/75 430/440 310/330
14/09/2021 550/557 754/760 640/645 70/75 430/440 310/330
13/09/2021 543/550 742/750 630/636 70/75 425/435 310/330
10/09/2021 538/545 738/745 630/636 70/75 420/432 310/330
09/09/2021 532/540 730/740 627/632 70/76 419/430 310/330
08/09/2021 528/535 723/730 623/629 70/75 419/426 310/330

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
16/09/2021 548/555 753/765 635/645
15/09/2021 548/555 750/761 635/645
14/09/2021 548/555 750/761 635/645
13/09/2021 535/550 737/745 630/636
11/09/2021 530/547 735/745 630/635
10/09/2021 530/547 735/745 630/635
09/09/2021 528/538 730/738 625/630
08/09/2021 525/531 718/730 616/625

Central Bank of Nigeria’s Official Naira Rates

N.B: These tables are updated three times a day.

 

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