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Yuan Slumps Most in a Month as Central Bank Cuts Reference Rate

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Yuan
  • Yuan Slumps Most in a Month as Central Bank Cuts Reference Rate

The yuan dropped the most in a month after the central bank weakened the currency’s reference rate and the dollar rebounded.

The onshore exchange rate declined 0.3 percent to 6.7748 a dollar as of 12:02 p.m. local time, its biggest drop since Oct. 10. The currency rallied 0.4 percent last week, its best performance since July, as a tightening U.S. presidential election race dragged down the greenback. The yuan fell to a record low against a basket of currencies.

A gauge of the dollar’s strength gained for the first time in seven days on Monday, after the FBI said it stuck by an earlier finding that Hillary Clinton didn’t commit a crime in her handling of e-mails as secretary of state. The odds of an interest rate increase by the Fed in December rose to 76 percent, more than five percentage points higher than they were two weeks ago.

“The yuan will drop against the dollar and a basket of currencies in the coming days, as the PBOC has been engineering the depreciation to preempt any sharp spikes after the U.S. election or a Federal Reserve rate hike,” said Iris Pang, senior economist for Greater China at Natixis SA in Hong Kong. Policy makers “can control the pace of depreciation with stronger fixings and direct intervention if there are any signs of stress.”

China’s foreign-exchange reserves may have dropped by $34 billion to $3.13 trillion in October, according to the median forecast of economists in a Bloomberg survey. The figures are due to be released later Monday.

The Bloomberg replica of the CFETS RMB Index, which tracks the yuan against 13 exchange rates, dropped for a fifth day to 93.74 Monday. That’s the lowest since the gauge was introduced in December. The People’s Bank of China cut the yuan’s daily reference rate by 0.31 percent, the most since Oct. 21. The offshore rate slid 0.17 percent.

China’s monetary authority was speculated to be propping up the yuan during the run-up to a Group of 20 meeting in September and the yuan’s entry into the International Monetary Fund’s reserves on Oct. 1. The PBOC was then seen pulling support, leading to a 1.5 percent tumble last month as a gauge of dollar strength surged on mounting bets of Fed tightening.

Money Markets

The central bank drained a net 140 billion yuan ($20.7 billion) in open-market operations on Monday, the most in three weeks, data compiled by Bloomberg show. The monetary authority has stepped in to pull funds from the financial system since offering 437 billion yuan of loans to lenders via Medium-term Lending Facility on Nov 3.

The overnight repurchase rate, a gauge of interbank funding availability, fell for a sixth day, the longest losing streak since January. The rate fell one basis point to 2.09 percent Monday, weighted average prices show. The yield on government notes due in a decade rose one basis point to 2.75 percent, according to National Interbank Funding Center prices.

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.

Published

on

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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