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New Zealand’s Economy Grows 0.9% in Second Quarter

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The New Zealand’s economy grew at the same pace in the second quarter as the first quarter, but with stronger production.

Gross domestic product rose 0.9 percent in the second quarter, pushing annual growth to 3.6 percent, Statistics New Zealand reported on Thursday.

The increase in international demand for goods (dairy, meat and fruit) saw exports climb 4 percent, its biggest quarterly increase in two-decade.

While household spending surged by 1.9 percent, with Kiwis reportedly spending more on eating out, furnishing their houses and going away.

Construction grew 5 percent, with increases in all sub-industries.  There’s also been an increase in investment in residential building and construction-related investment.

Service industries grew 0.7 percent.  The main drivers were rental, hiring, real estate, retail and health care.

GDP per capita rose 0.5 percent in the June quarter, up from a 0.3 percent increase in March.

As for what this means for our hip pockets, ANZ chief economist Cameron Bagrie say any growth flows into the economy and eventually into wages.

“If we continue to see unemployment track down, wages will start to move up and people will start to get ahead.

“We’re seeing real wage growth at the moment of 1.5 percent, but I’m expecting that to grow to 2.5 percent over the next 24 months.”

Finance Minister Bill English says the annual results puts New Zealand in the top three in the OECD in terms of high growth rates.

It also puts the worth of New Zealand’s economy at $250 billion for the first time.

Mr English says the annual growth is more than double the OECD rate of 1.6 percent and compares with 3.3 percent in Australia, 2.2 percent in the UK and 1.2 percent in the US.

But international economist Ann Pettifor says New Zealand’s economy is “hugely imbalanced”.

Ms Pettifor, a UK-based economist and director of Prime: Policy Research in Macroeconomics, told Paul Henry central banks, including New Zealand’s Reserve Bank should be managing the way banks lend money.

“In Auckland, banks are lending crazy money on speculation – speculating that property prices will rise.

“It’s overvalued bricks and mortar and speculating that that price will continue rising forever and of course it won’t and when it starts falling then the debt has to be re-payed and the equity in the property falls.”

She says talk of New Zealand being a “rockstar economy” was “the kind of language we heard before the [Global Financial Crisis]”.

“But what’s interesting about New Zealand is that inequality rose in this country more than in any other developed country in the world between 1980 and the 2000s – that’s extraordinary.”

She says those levels of inequality lead to political instability which has led to the rise of the likes of Donald Trump and “fascists in Europe”.

Labour’s finance spokesperson Grant Robertson says everyday Kiwis won’t be feeling the benefits of GDP growth.

“The answer is because on a per person basis our economy is barely moving.

“We have seen enormous population growth in New Zealand in the last year and that generates economic activity. But what these numbers show is that we are not getting the increased economic value from that to mean real sustainable growth. This adds further to the need to review and adjust immigration policy to ensure it contributes to real growth.”

He says real disposable income per capita fell in the past quarter, meaning Kiwis “don’t feel they’re getting ahead”.

Mr Robertson says the economy is being kept afloat by population growth and an unsustainable housing bubble.

 

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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