Forex

KPMG Business Survey Highlights Forex Risk in Nigeria

Published

6 years ago

April 18, 2018

KPMG Business Survey Highlights Forex Risk in Nigeria

A survey of 94 executives of multinationals, large sized public and private companies across various industries that was conducted by KPMG Nigeria has ranked foreign exchange (forex) risk as the highest hurdle that might impact organisations over the next two years.

The survey, titled: ‘Top Ten Business Risks 2018/2019,’which was presented yesterday at media briefing in Lagos,identified a total of 31 business risks with solutions to mitigate the risks.

The top 10 risks were forex risk, fiscal and monetary policy risk, regulatory risk, crude oil price risk, brand and reputational risk, customer attrition risk, political risk, liquidity risk, insecurity risk and interest rate risk.

Speaking at the briefing, the Partner and Head of Risk Consulting KPMG, Mr. Olumide Olayinka said the survey which was KPMG’s second edition was carried out from December 2017 to February 2018.

He said: “The report represents our findings from the risk survey from about 94 executives and directors of large sized public and private companies across a number of industries in Nigeria.

“And these executives include the chief risk officers of those organisations, chief compliance officers and indeed the chief audit executives.

“The objective of the survey was to obtain the perspective of these executives on the potential impact of 31 specific risk issues across four dimensions. One of those is the macroeconomic dimension, strategic dimension, financial and operational dimensions.

“The report clearly identifies the key risks likely to affect businesses operating in various sectors operating in the Nigerian economy.”

He added: “Hopefully, this report would help organisations to see the risks that would affect their businesses and proactively put in place things that would manage those risks.”
An aspect of the report relating to forex stated: “The active management of FX risk has become imperative, due to CBN’s flexible FX rate policy, which seeks to improve the dynamics of the Nigerian FX market.

“In addition, Nigeria is still behind the levels of foreign exchange liquidity generated from export proceeds and capital inflows in 2013, despite improved terms of trade and significantly higher capital inflows (in part due to the introduction of the Investors’ & Exporters’ FX window) which helped ease concerns about FX availability and rate stability in 2017.

“In light of the above, executives are enjoined to continually monitor the country’s trade level, external reserves, policy direction and capital inflows which could impact FX availability and rates.”

On her part, Partner in Risk Consulting, KPMG, Mrs. Tomi Adepoju said: “The nature of some of the highly rated risks, there is no doubt that some of our economic challenges, as a nation are multi-faceted and require strategic regulatory interventions.

“To this end, we enjoin policy makers, regulators and capital market operators to support the Nigerian Private Sector and Capital Market to continue to embrace carefully coordinated initiatives for sustainable economic growth.”

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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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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

3 days ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

4 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

4 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 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.