Forex

ECB Keeps Policy Unchanged to Battle Economic Slowdown

Published

5 years ago

January 24, 2019

ECB Keeps Policy Unchanged to Battle Economic Slowdown

The European Central Bank pledged to keep interest rates at record lows at least through the summer after policy makers met amid rising concern about the region’s growth outlook.

The decision on Thursday came just hours after a report signaled the euro area’s economic slowdown is set to drag on, with the region beset by political strife and global risks such as mounting trade protectionism. Economists and investors have cut their forecasts, questioning the relative optimism President Mario Draghi expressed last month when he announced the end of bond purchases.

“The biggest risk right now is that we talk ourselves into a recession,” Natixis Chief Executive Officer Jean Raby said in a Bloomberg interview at the World Economic Forum in Davos. “The environment from the monetary-policy standpoint is likely to stay relatively stable and benign.”

The euro was little changed near a three-week low after the report. It traded at $1.1349 at 1:46 p.m. Frankfurt time, down 0.3 percent.

Draghi will hold a media briefing at 2:30 p.m. in Frankfurt, where the focus will be on the Governing Council’s assessment of the risks to growth. A survey of purchasing managers published earlier Thursday showed German manufacturing shrinking for the first time in four years, dragging the euro-area economy into its worst performance since 2013.

Earlier this week, the International Monetary Fund cut its global growth forecast, blaming softening demand across Europe. Germany and Italy saw the biggest revisions after stricter emissions tests slashed car production in the region’s largest economy and a budget spat between Rome and Brussels boosted sovereign borrowing costs.

Economists predict the ECB will lower its outlook when projections are updated in March, and have extensively discussed in the run-up to Thursday’s meeting whether the recent spate of disappointing data will prompt policy makers to describe risks to growth as tilted to the downside.

To maintain ample monetary accommodation, the Frankfurt-based institution said it intends to reinvest proceeds from bonds maturing under its 2.6 trillion-euro ($3 trillion) bond-buying program for “an extended period of time past the date” of its first interest-rate increase. Its cautious approach is echoed around the world as the U.S. Federal Reserve stresses it’ll be patient with rate hikes to ease market turbulence and China seeks ways to to deal with its slowest expansion in almost three decades.

Draghi told European lawmakers earlier in January that the bloc isn’t heading into a recession. Acknowledging that continued uncertainty over economic prospects weighs on confidence, he said there’s also reason for optimism: Unemployment continues to fall across the region and wages are on the rise, giving the ECB reason to believe inflation will pick up gradually.

For some policy makers including Sabine Lautenschlaeger and Estonia’s Ardo Hansson, that means the economy is evolving as projected and a rate hike later is this year still in the cards.

Yet the window for the ECB to tighten policy is closing, according to a Bloomberg survey of economists. They’ll be looking for any hints from Draghi on whether the central bank will offer new long-term loans to prevent a tightening of financial conditions. A suggestion was already made in December to “revisit the contribution” the previous round made to the policy stance. Most economist except an announcement in March.

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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

3 days 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

3 days 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

4 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.