Forex

Swiss Economy Unexpectedly Stalls on Weak Domestic Demand

Published

7 years ago

December 2, 2016

Swiss Economy Unexpectedly Stalls on Weak Domestic Demand

Switzerland’s economy failed to grow for the first time in more than a year in the third quarter, held back by weak domestic demand and the first fall in government spending since early 2014.

The stagnation followed expansion of 0.6 percent in the three months through June, and fell short of the 0.3 percent growth forecast by economists in a Bloomberg survey. The statistics office said the weak performance wasn’t a sign of the recovery being thrown off course.

“This surprisingly slow growth is not mainly due to the strong franc, but due to a few special factors — for example, there was no growth impulse from the health care sector which is unusual,” Ronald Indergand, head of the economics department at the SECO, said by telephone. “We believe that the quarter is an outlier and that the recovery of the economy from the strong franc isn’t in jeopardy.”

Switzerland’s growth has long been plagued by the strength of its currency, which the central bank says is “overvalued” and occasionally tries to tame with market interventions. While the recovery in the euro area — Switzerland’s biggest market — is chugging along, political uncertainty linked to elections across the region next year could undermine demand there.

“The surprise for us was the weak domestic situation,” Indergand said. “Manufacturing was relatively solid, and other sectors such as the tourism industry that have been under pressure due to the strong franc didn’t fare so poorly either.”

Contributing Factors

Exports of goods relevant to the real economy increased 1.2 percent in the quarter, thanks to strong foreign demand for pharmaceuticals, according to the SECO. Exports of services contracted 0.8 percent, and when factoring in imports of both goods and services, that resulted in a negative trade balance.

Swiss household spending rose just 0.1 percent, while investment in equipment increased 0.5 percent, the SECO said. Government consumption declined 0.1 percent.

Recent economic gauges have indicated that economic growth is on track. A closely watched index of manufacturing activity touched its highest in nearly three years in November. Output increased for a 14th month and the backlog of orders rose markedly.

The Swiss National Bank, which caused the surge in the franc last year when it gave up its minimum exchange rate, will issue its first take on growth in 2017 at its policy assessment on Dec. 15. It’s most recent forecast, issued in September, was for growth of approximately 1.5 percent in 2016. The SECO, which will also update its projections on Dec. 15, predicts an expansion of 1.8 percent in 2017.

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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

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 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 N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly 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: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

2 days ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 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 N1,050 and sell it at N1,040 on Wednesday, April 17th, 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.