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

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

20 hours 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

20 hours 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.