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.

Up Next

Gold Falls With Yen as Haven-Asset Flight Eases

Don't Miss

Gold and Yen Extend Rallies on EU, Trump Concerns

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.

Comments

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

3 mins 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

57 mins 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

1 day 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.