Forex

London FX Trading Volumes Hit Record, North America Rises in April

Published

6 years ago

July 24, 2018

London FX Trading Volumes Hit Record, North America Rises in April

Daily trading volumes in the world’s biggest foreign exchange trading center, London, surged to a record in April as trading currency swaps and the British pound picked up, a semi-annual survey by the Bank of England showed on Tuesday.

Currency turnovers in North America, another major hub, posted strong gains from year-ago levels on broad growth across different foreign exchange instruments, according to New York Federal Reserve semiannual survey data also released on Tuesday.

“I think the data show that the secular trend of rising FX volumes comes into play again. It was interrupted after the (global financial crisis) and some regulatory measures that dampened spec FX activities, but it is not broken,” said Ulrich Leuchtmann, head of FX and emerging market research at Commerzbank AG in Frankfurt.

Traders’ perception of possibly less easy monetary policies from the European Central Bank and the Bank of Japan, while the Federal Reserve sticks to its gradual rate-hike path, spurred changes in their positions in the dollar, euro and the yen, analysts said.

Average daily forex turnover in London stood at $2.73 trillion in April, up 15 percent from six months ago, with swaps trading up 18 percent in that period versus an 8 percent rise in cash trading volumes.

Across the Atlantic, daily currency volumes averaged $993.55 billion in April, up 11.7 percent from a year ago, the New York Fed said.

London’s turnover in the British pound GBP=D3 rose to a record $351 billion, up 18 percent from October 2017 and nearly doubling from last year, as disappointment over the central bank not raising interest rates prompted traders to dump the pound against the dollar.

The British currency GBP=D3 rose to a post-Brexit referendum-vote high at $1.4377 in mid-April and fell nearly five percent until the end of the month, after Bank of England Governor Mark Carney signaled the central bank may not raise interest rates in May due to “mixed” economic data.

“April was a particularly bad month for sterling traders as Carney poured cold water on expectations of a rate hike by the market,” said Michael Hewson, chief market analyst at CMC Markets in London.

Daily turnover in the euro-dollar exchange rate jumped by 11 percent to $778 billion per day — the most-traded currency pair — for a market share of 29 percent of the total traded volumes. Chinese yuan trade almost doubled from a year ago, the report said.

In terms of market share, foreign exchange swaps comprised nearly half of total turnover in London, followed by cash trading and currency forwards.

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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

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

17 hours 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

18 hours 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

2 days 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.