Connect with us


Global Stocks Tumble After U.S. Selloff; Yen Gains



Yen and dollar
  • Global Stocks Tumble After U.S. Selloff; Yen Gains

Equities tumbled across the globe after the S&P 500 Index fell the most since Donald Trump’s election, as stocks joined an unwinding of reflation trades amid uncertainty over prospects for the U.S. president’s policies. The yen rose a seventh day as investors sought safety.

Financial and commodity shares led the global selloff as benchmark indexes in Japan and Australia slid the most since early November and European stocks fell for a third day. The S&P 500 sank more than 1 percent for the first time since Oct. 11, while a gauge of emerging-market stocks halted an eight-day rally. A slump in government bond yields continued and the yen reached the highest since November. Gold extended gains while base metals tumbled, with iron ore approaching a bear market.

Volatility in financial markets is soaring after a period of relative calm as concern is mounting that pro-growth U.S. policies won’t sail through Congress. The Republican plan to repeal and replace Obamacare is drawing strong opposition ahead of a crucial floor vote in the House. Top Republicans warned failure to pass a health-care bill on Thursday could imperil tax and spending reforms.

“The reality is setting in that markets have expected too much from Trump,” said Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank Inc. “Investors are recalibrating expectations to reflect the reality that Trump’s pro-growth agenda will not happen overnight but will take time and legislation. Markets have also gone up sharply — that allows for a technical correction.”

Equities until now have largely escaped investors’ efforts to unwind so-called Trump trades. While the dollar has been falling steadily since the beginning of the year, dropping more than 4 percent from a January peak, global stocks have been marching higher. The MSCI All Country World Index reached a record last week while the MSCI Emerging Markets Index closed Tuesday at the highest since June 2015.

“I believe markets do need a good reason to take profits, and here it is, ” Margaret Yang, an analyst at CMC Markets in Singapore, wrote in an email. “This is a healthy step back because too much optimism has been priced in and markets have gone too high and too far.”

Here are the main moves in markets:


  • The MSCI Asia Pacific Index dropped 1.4 percent as of 8:20 a.m. in London, the most since mid-December. Japan’s Topix lost 2.1 percent, the biggest loss since Trump’s election. The selloff came despite data showing Japan’s exports rose the most in two years in February. Australia’s S&P/ASX 200 fell 1.6 percent, also the most since November.
  • The MSCI Emerging Markets Index dropped for the first time in nine days, down 0.8 percent. The Hang Seng Index dropped 1.1 percent, while a measure of Chinese shares traded in Hong Kong lost 1.8 percent after closing at the highest in almost 17 months on Tuesday.
  • The Stoxx Europe 600 fell 0.8 percent, slumping for a third day with banks leading declines.
  • Futures on the S&P 500 fell 0.1 percent. The benchmark index tumbled 1.2 percent to the lowest since Feb. 14 on Tuesday. Banks sank 2.9 percent for the steepest slide since June 24, the day after the U.K. vote to leave the European Union.


  • The Bloomberg Dollar Spot Index was flat, following a five-day decline.
  • The yen strengthened 0.3 percent to 111.37 per dollar, extending its longest winning streak since mid-January. The Australian dollar slipped 0.3 percent.
  • The British pound increased less than 0.1 percent after jumping 1 percent Tuesday as U.K. inflation accelerated more than forecast to break through the Bank of England’s target for the first time since 2013. The euro slipped less than 0.1 percent to $1.0804 after climbing 0.7 percent in the previous session.


  • The yield on 10-year Treasury notes declined one basis point to 2.41 percent, after sliding four basis points in each of the past three sessions.
  • Australian 10-year yields dropped five basis points to 2.76 percent. New Zealand equivalent rates retreated two basis points to 3.20 percent.


  • West Texas Intermediate oil fell 0.5 percent to $47.98, dropping for a third day as U.S. crude supplies are forecast to climb.
  • Iron ore retreated, with futures for September delivery falling more than 6 percent.
  • Copper lost 0.7 percent following a 1.8 percent drop in the previous session amid signs supplies are returning. Disruptions caused the metal to surge last month to the highest level since 2015. Nickel fell 1.9 percent.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading


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



Naira Exchange Rates - Investors King

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.

Continue Reading


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.



New Naira Notes

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.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,020
  • Selling Rate: N1,010

Continue Reading


Naira’s Upsurge Strains Nigeria’s Foreign-Exchange Reserves



New Naira notes

As the Nigerian Naira continued to rebound from its record low against its global counterparts, the nation’s foreign exchange reserves has been on the decline, according to the data published by the Central Bank of Nigeria (CBN) on its website.

CBN data showed liquid reserves have plummeted by 5.6% since March 18 to $31.7 billion as of April 12, the largest decline recorded over a similar period since April 2020.

The recent surge in the Naira follows a series of measures implemented by the Central Bank to liberalize the currency market and allow for a more flexible exchange rate system.

These measures included devaluing the Naira by 43% in January and implementing strategies to attract capital inflows while clearing the backlog of pent-up dollar demand.

Charles Robertson, the head of macro strategy at FIM Partners, acknowledged the Central Bank’s efforts to restore the Naira to a realistic exchange rate, suggesting that it aims to stimulate investment in the local currency and enhance liquidity in the foreign exchange market.

Despite the rapid depletion of foreign-exchange reserves, Nigeria still maintains a significant cushion, bolstered by a rally in oil prices and inflows from multilateral loans.

Gross reserves of approximately $32.6 billion provide coverage for about six months’ worth of imports, according to the International Monetary Fund.

The Central Bank’s disclosure last month that it had cleared a backlog of overdue dollar purchase agreements, estimated at $7 billion since the beginning of the year, indicates progress in addressing longstanding currency challenges.

However, uncertainties remain regarding the extent of dollar debt retained by the Central Bank as revealed by its financial statements late last year.

Furthermore, the decline in foreign-exchange reserves persists despite a surge in inflows into Nigeria’s capital markets, driven by interest rate hikes and increased attractiveness of local debt.

Foreign portfolio inflows exceeded $1 billion in February alone, contributing to a total of at least $2.3 billion received so far this year, according to central bank data.

Analysts remain cautiously optimistic about the trajectory of Nigeria’s foreign-exchange reserves, anticipating stabilization or potential growth fueled by anticipated inflows from Afreximbank, the World Bank, and potential eurobond issuance.

Also, the resurgence of oil prices and the expected return of remittances through official channels offer prospects for replenishing reserves in the near future.

Continue Reading