Forex

Brexit Saga Hits Pound

Published

7 years ago

January 17, 2017

Brexit Saga Hits Pound

Sterling slid below $1.20 for the first time in more than three months after newspapers reported that May will signal in a speech on Tuesday her willingness to quit the European Union’s single market for goods and services to regain control of Britain’s borders and laws. It’s the outcome seen by many economists as the least desirable, and the one currency traders have fretted about since the U.K.’s June vote to leave the bloc.

“The main source of inflation does seem to be sterling and the pass-through is very clear and we’ve broken some key levels,” Steven Major, global head of fixed income research at HSBC, said on Bloomberg Television. “The question is whether it affects what the Bank of England is thinking or whether they view it as transitory.”

The pound slid as much as 1.6 percent to $1.1986, dropping to the weakest since the “flash crash” of Oct. 7. It was at $1.2056 at 12:37 p.m. London time. Inflation expectations climbed, with the 10-year break-even rate, a gauge of the bond market’s outlook for U.K. price growth over the next decade, touching the highest since July 2013.

Government officials told the Sunday Times that they expect May’s comments to cause a “market correction.” The BOE declined to comment on the contents of Carney’s address.

Currency Effects

On the day May speaks, data will probably show inflation accelerated to 1.4 percent in December from 1.2 percent. While that’s below the BOE’s 2 percent target, it’s forecast to breach that level within months as the pound’s 19 percent slide since the referendum feeds through to import prices.

The latest decline in sterling means BOE officials may have to make the uncomfortable decision between tolerating an even bigger inflation overshoot or tightening policy — even if that causes more short-term pain — to keep price-growth in check. The central bank will publish new forecasts for growth and inflation on Feb. 2, when it is also scheduled to announce its next policy decision.

The Monetary Policy Committee members have a neutral bias on where rates will go next as they monitor the economic fallout from the decision to quit the EU. While the referendum initially spurred them to cut interest rates and resume asset purchases, and to signal that another rate cut was likely, their stance changed after the economy proved more robust than expected.

The BOE is probably still some way from a rate change. The median forecast of economists is for no change from the current record-low 0.25 percent until at least the second quarter of 2019. When that move comes, there’s a higher chance of a hike, according to a survey conducted last week.

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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

10 hours 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

1 day 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

1 day 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.