Forex

Currency Market on Alert for Yen Intervention Amid Brexit Strife

Published

8 years ago

June 18, 2016

A potential U.K. exit from the European Union next week may have far-reaching implications for the $5.3 trillion-a-day currency market. Add to that list Japan’s currency strengthening to levels that spark speculation about central bank intervention to counter the move.

The yen surged to the strongest in almost two years against the dollar this week as investors sought refuge before the June 23 British referendum. The rally prompted Finance Minister Taro Aso to express concern and call for coordination with foreign counterparts to address what he described as disorderly exchange-rate moves.

“They would be able to intervene,” Alan Ruskin, New York-based head of Group-of-10 currency strategy at Deutsche Bank AG, the world’s fourth-largest currency trader, said in an interview on Bloomberg Television. “If the yen was moving through 100 against the dollar and there were some Brexit-related events, then I could certainly see the Bank of Japan saying ‘Look here guys, we’re subject to all these external forces.’”

The Bank of Japan refrained this week from adding to stimulus, even as policy makers seek to bolster economic growth, which would benefit from a weaker yen making exports more competitive. Japan’s currency has rallied more than 15 percent against the dollar this year on haven demand from global economic turmoil, with hedge-fund positioning reaching the most bullish in six years.

Japan’s currency rose 2.6 percent this week, reaching 103.55 per dollar, the strongest level since August 2014. It added 2.4 percent to 117.47 per euro.

The premium for one-month options to buy the yen versus the greenback, over the cost of contracts to sell, widened to about 3 percentage points on June 16, the most since 2010, according prices compiled by Bloomberg. The gap was at 2.8 on Friday.

Yen Watch

Analysts at Standard Bank Group Ltd., Prudential Financial Inc., Royal Bank of Canada, Bank of Tokyo-Mitsubishi UFJ Ltd. and Toronto-Dominion Bank said they are on watch for yen intervention.

“The most likely catalyst for that would be a Brexit outcome, in my view, which would lead potentially to very high volatility in foreign-exchange markets,” said Shahab Jalinoos, global head of foreign-exchange strategy at Credit Suisse Group AG in New York.

Aso, who is also deputy prime minister, said Friday that he wants to take “firm action” in line with Group-of-Seven and G-20 agreements on avoiding unstable currency markets.

Yet there’s no indication from the G-7 that they’re open to joint intervention. The last time Japan sold yen to restrain gains was in 2011, in a multilateral intervention following the devastating earthquake and tsunami.

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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

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

1 day ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

1 day ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.