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Heat Escapes From the Aussie Dollar’s Rally

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  • Heat Escapes From the Aussie Dollar’s Rally

This month’s Reserve Bank of Australia meeting was a lot more keenly watched than might be expected considering the overwhelming consensus that policy makers were going to leave the cash rate at a record low for a 12th month.

That interest had been fueled by intensifying speculation that rate hikes were soon to be on the menu Down Under and the resulting surge in the Australian dollar. RBA Governor Philip Lowe met, or even perhaps exceeded expectations by pushing back against both trends. Among the key comments in the RBA’s wordiest statement for more than four years, Lowe said the Aussie’s gain was “weighing on the outlook for output and employment.”

In money markets, rate-rise speculation also cooled, with traders stepping back after briefly putting the odds at a hike within one year at 100 percent. They are still expecting an increase, which may contrast with what Australia’s yield curve is telling us. The gap between three- and 10-year rates is often seen as an indicator of economic prospects, and the fact that it has stayed down could signal the sort of sluggish output growth that would keep the RBA on hold.

Something else to consider is the way the currency, and reduced inflationary expectations, may already have started to tighten conditions in the economy. The RBA recently estimated the new neutral cash rate — the level at which the borrowing benchmark is neither boosting or braking output — at 3.5 percent, which would indicate there’s a whole 2 percentage points worth of stimulus from the current setting at 1.5 percent. However, if you take into account market projections for inflation and the impact of a stronger Aussie, there may be just 1 percentage point of assistance at the moment.

The RBA’s currency dilemma certainly seems to be inflating the size of its statements if nothing else, a phenomenon that was apparent in 2012 and 2013 when the Aussie remained buoyant for some time in the face of interest-rate cuts.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Naira

Naira Exchange Rates Today, Wednesday, July 28, 2021

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Dollar to Naira Exchange Rate - Investors King

Naira plunged further against its global counterparts as the Central Bank of Nigeria (CBN) announced on Tuesday it has stopped sales of forex to Bureau De Change Operators (BDCs).

The naira plunged against the United States Dollar from N505 it traded on Tuesday to N522 on Wednesday at the black market. Against the British Pound and the Euro, the local currency exchanged at N710 and N600, respectively.

The Central Bank of Nigeria had accused Bureau de Change operators of engaging in money laundering and illicit flows with criminal-minded individuals that operate mainly at the unregulated black market section of forex.

Operators at the bureau de change section of forex had been accused of being the main source of forex for speculators and hoarders that manipulate forex rates at the unregulated black market, this the CBN plans to curb by cutting its weekly forex supply to BDCs but focus on servicing the economy through the banks.

The Naira also declined from N500 to N520 against the United States Dollar at the Bureau De Change section. The decline continues against the British Pound and the Euro as it dropped from N700 and N595 to N705 and N600, respectively. See the tables below for more exchange rates.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
28/07/2021 515/522** 700/710** 590/600** 63/70 410/415 300/320
27/07/2021 500/505 695/703 585/592 62/69 407/415 300/320
26/07/2021 500/504 695/703 585/592 62/69 407/415 300/320
23/07/2021 500/504 698/705 588/595 62/69 407/415 300/320
22/07/2021 498/503 695/703 585/590 62/69 407/415 300/320
19/07/2021 495/503 698/705 585/592 62/69 407/415 300/320
16/07/2021 502/506 700/708 590/596 62/69 407/415 300/315
15/07/2021 500/505 700/708 590/596 62/69 407/415 300/320
14/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
13/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
12/07/2021 500/505 700/708 590/595 62/69 407/415 300/320
09/07/2021 500/505 700/708 588/593 62/69 407/417 300/320
08/07/2021 499/503 700/708 588/593 62/69 407/417 300/325
07/07/2021 499/503 700/710 588/593 62/69 407/417 300/325
06/07/2021 499/503 698/710 590/595 62/69 407/417 300/325

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
28/07/2021 510/520 695/705 580/600
27/07/2021 490/500 690/700 580/595
26/07/2021 490/500 694/705 580/595
23/07/2021 490/500 694/705 580/595
22/07/2021 490/500 690/705 580/595
19/07/2021 490/500 690/707 580/595
16/07/2021 490/500 700/710 585/600
15/07/2021 490/500 698/710 585/600
14/07/2021 490/500 698/710 590/595
13/07/2021 490/500 697/710 585/600
12/07/2021 490/500 698/710 585/600
09/07/2021 490/500 698/710 585/600
08/07/2021 490/500 697/710 585/600
07/07/2021 490/500 697/710 585/600
06/07/2021 490/500 697/710 585/600
05/07/2021 490/500 700/714 585/600

Central Bank of Nigeria’s Official Naira Rates

Date Currency Buying(NGN) Central(NGN) Selling(NGN)
7/27/2021 US DOLLAR 409.16 409.66 410.16
7/27/2021 EURO 483.5044 484.0952 484.6861
7/27/2021 SWISS FRANC 447.2183 447.7648 448.3113
7/27/2021 YEN 3.7196 3.7242 3.7287
7/27/2021 CFA 0.7161 0.7261 0.7361
7/27/2021 WAUA 580.9508 581.6608 582.3707
7/27/2021 YUAN/RENMINBI 62.8549 62.9322 63.0094
7/27/2021 RIYAL 109.0919 109.2252 109.3585
7/27/2021 SOUTH AFRICAN RAND 27.5662 27.5999 27.6336
7/27/2021 DANISH KRONA 64.9914 65.0708 65.1503

N.B: These tables are updated three times a day.

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Forex

CBN Halts Forex Sales to Bureau De Change Operators

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US Dollar - Investorsking.com

The Central Bank of Nigeria (CBN) on Tuesday announced it has halted the sales of forex to Bureau De Change Operators (BDCs) across the country.

Godwin Emefiele, Governor, CBN, disclosed this after the monetary policy committee’s meeting held in Abuja on Tuesday.

According to the CBN governor, bureau de Change Operators have become a conduit for illegal financial flows, saying they work with corrupt individuals to perpetrate crime, illicit flows and money laundering in the country.

The BDCs, in the past, have been linked to various financial crimes and at a point blamed partly for the chronic dollar scarcity being experienced across the country.

A large number of Bureau de Change Operators prefer to sell their weekly forex allocations from the CBN directly to speculators and hoarders at the parallel market, popularly known as the black market, for higher gains, hence they are responsible for several of the unregulated forex activities going on across the nation.

However, the CBN decision will impact Naira outlook and further plunge the embattled currency against global counterparts.

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Naira

Naira Exchange Rates Today, Tuesday, July 27, 2021

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Naira Notes - Investors King

Naira exchange rates remained largely unchanged across key forex segments on Tuesday morning as the local currency traded at N505 to a United States Dollar at the Bureau De Change section. While against the British Pound and the Euro common currency, it exchanged at N703 and N592, respectively.

At the Bureau de change section, the Naira traded at N500 to the United States Dollar but exchanged at N705 and N595 to a British Pound and Euro, respectively.

The Central Bank of Nigeria’s exchange rates remained inaccessible to most Nigerians despite the relatively better rates. Low dollar liquidity continued to weigh on the central bank’s ability to effectively support naira value and stimulate growth across key sectors of the economy. See the tables below for other exchange rates.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
27/07/2021 500/505 695/703 585/592 62/69 407/415 300/320
26/07/2021 500/504 695/703 585/592 62/69 407/415 300/320
23/07/2021 500/504 698/705 588/595 62/69 407/415 300/320
22/07/2021 498/503 695/703 585/590 62/69 407/415 300/320
19/07/2021 495/503 698/705 585/592 62/69 407/415 300/320
16/07/2021 502/506 700/708 590/596 62/69 407/415 300/315
15/07/2021 500/505 700/708 590/596 62/69 407/415 300/320
14/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
13/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
12/07/2021 500/505 700/708 590/595 62/69 407/415 300/320
09/07/2021 500/505 700/708 588/593 62/69 407/417 300/320
08/07/2021 499/503 700/708 588/593 62/69 407/417 300/325
07/07/2021 499/503 700/710 588/593 62/69 407/417 300/325
06/07/2021 499/503 698/710 590/595 62/69 407/417 300/325

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
27/07/2021 490/500 690/700 580/595
26/07/2021 490/500 694/705 580/595
23/07/2021 490/500 694/705 580/595
22/07/2021 490/500 690/705 580/595
19/07/2021 490/500 690/707 580/595
16/07/2021 490/500 700/710 585/600
15/07/2021 490/500 698/710 585/600
14/07/2021 490/500 698/710 590/595
13/07/2021 490/500 697/710 585/600
12/07/2021 490/500 698/710 585/600
09/07/2021 490/500 698/710 585/600
08/07/2021 490/500 697/710 585/600
07/07/2021 490/500 697/710 585/600
06/07/2021 490/500 697/710 585/600
05/07/2021 490/500 700/714 585/600

Central Bank of Nigeria’s Official Naira Rates

N.B: These tables are updated three times a day.

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