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Yen Will Rise to 90, Says Sakakibara

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eisuke-sakakibara

Japan’s former top currency official Eisuke Sakakibara says the the nation’s central bank stimulus is nearing its limit, and the yen will gradually strengthen toward 90 per dollar next year.

Japan’s currency gained the most since July last week, touching 100.10 on Thursday, the day after the Bank of Japan shifted policy toward targeting the shape of the sovereign yield curve instead of money-supply expansion, while leaving the negative deposit rate and scale of asset purchases unchanged. The yen could break 100 “at any time,” and may “immediately” strengthen as far as 95, according to Sakakibara, who was dubbed “Mr. Yen” for his ability to influence the exchange rate while a senior Ministry of Finance bureaucrat in the 1990s.

“The yen would probably have a slow appreciation, so that I would not be surprised to see dollar at 90 yen at the end of next year,” the 75-year-old, who is now a professor at Aoyama Gakuin University, said in an interview Monday. “At the very least, monetary easing is getting exhausted. They’ve been doing it for a long time. The effect is getting weaker and weaker.”

With its latest stimulus tweaks, Japan’s central bank has effectively positioned itself for the long haul, also scrapping a two-year time frame for achieving 2 percent inflation. After Governor Haruhiko Kuroda started quantitative-and-qualitative easing in April 2013, the yen depreciated as much as 26 percent versus the dollar to a 13-year low of 125.86 in June 2015. With the BOJ now cornering 36 percent of the Japanese government bond market, doubts have grown about the sustainability of the program. The surprise introduction of a negative-rate policy in January of this year only weakened the yen for one day.

Sakakibara says it’s unlikely the central bank will aggressively ease monetary conditions further. While a deepening of the negative deposit rate “is not unthinkable,” the probability is low because the policy has not been well received by financial institutions or the general public, he said.

Kuroda reiterated Monday there is no limit to monetary policy, and said talk of limits is not helpful at all.

The yen was at 100.93 per dollar as of 3:48 p.m. in Tokyo. It surged to as high as 99.02 on June 24, in the immediate aftermath of the U.K. referendum decision to leave the European Union. It is the best-performing developed-market currency in 2016 with a 19 percent appreciation versus the dollar.

Sakakibara accurately predicted the currency’s advance this year from near 120 per dollar to beyond 100 for the first time since 2013, defying the consensus among analysts at the start of the year for it to fall to 124. The median estimate remains that the yen will end the year weaker at 104 per dollar.

Strength in the yen has been exacerbated by the Federal Reserve’s decision to refrain from raising rates so far in 2016. Futures signal 55 percent odds of tighter policy by the end of this year.

Given the diverging outlook for monetary policy between the U.S. and Japan, some appreciation of the yen against the dollar “is only natural,” according to Sakakibara. However an exchange rate of 95-100 would be all right for the Japanese economy.

“This level of yen strength is not a crisis,” he said. “If it breaks 90 and hits 80, then I would start to consult with the U.S. for joint intervention.”

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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Forex

CBN Cracks Down: Revokes Licenses of 4,173 Bureaux De Change Operators

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Bureau De Change Operator

The Central Bank of Nigeria (CBN) has revoked the operational licenses of 4,173 Bureaux De Change (BDC) operators across the country.

This action comes as the CBN exercises its authority under the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Revised Operational Guidelines for Bureaux De Change 2015.

The affected BDCs failed to adhere to essential regulatory provisions, including the payment of necessary fees for license renewal, timely rendition of returns, and compliance with CBN directives on Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

Sidi Ali, the Acting Director of Corporate Communications at the CBN, explained that the revocation underscores the importance of strict adherence to regulatory guidelines in the financial sector.

The CBN also announced its intent to revise the regulatory and supervisory guidelines for Bureaux De Change operations, with compliance to be mandatory for all stakeholders.

The public has been advised to take note of the regulatory changes and act accordingly.

This crackdown underscores the CBN’s commitment to maintaining the integrity and stability of Nigeria’s financial system through stringent regulatory oversight.

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Naira

Black Market Dollar to Naira Exchange Rate Today, March 1st, 2024

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 NGN in the black market, also referred to as the parallel market or Aboki fx.

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Naira Exchange Rates - Investors King

As of March 1st, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,530 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 N1,480 and sell it at N1,470 on Thursday, February 29th, 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: N1,530
  • Selling Rate: N1,520

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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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