The dollar faced a fourth consecutive day of decline, setting it on course for its worst month since November last year.
This trend is bolstered by increasing optimism among traders regarding the Federal Reserve’s trajectory toward rate cuts.
The South Korean won and Thai baht led the gains in Asia, with the won experiencing its most significant jump in almost two weeks.
Simultaneously, Treasuries stabilized after a previous rally, with yields on the two-year note, sensitive to the Fed’s rate path, hitting a one-week low.
The market sentiment reflects a broader positive outlook, with Wall Street forecasters becoming more upbeat about the prospects for the coming year.
Improved investor sentiment and reduced expectations of a recession have fueled this optimism, along with the belief that the Fed has completed its rate-hiking cycle, prompting a rally in the S&P 500.
Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, cautioned about the potential consequences of rate cuts, stating, “If the market is right in expecting that rate cuts could start maybe even at the end of the first quarter, in the first half, that would require to some degree a weaker economic and labor market backdrop than what we’re seeing right now.”
Despite the positive market sentiment, concerns about the economic and labor market backdrop persist.
The Bloomberg US Treasury Index has turned positive for the year, reflecting slowing inflation and measured job growth that triggered a rally and sent yields plummeting.
Traders are closely monitoring economic data this week, including the Fed’s preferred measure of underlying inflation.
Also, corporate earnings reports from prominent firms such as Crowdstrike Holdings Inc., Salesforce Inc., and Dell Technologies Inc. will provide insights into the evolving landscape of cybersecurity priorities and corporate expenditure.
The Fed’s expressed concern about inflation persisting above the 3% target adds a layer of complexity to the market’s reaction, as analysts anticipate potential pushback against implied easing and the recent rally in bonds and shares.
As investors navigate through these evolving dynamics, gold remains stable near its highest level since May, supported by lower Treasury yields and expectations of impending Fed interest rate cuts.
Meanwhile, oil prices extend their decline as the market weighs the possibility of deeper output cuts from OPEC+ against signs of supply outpacing demand.
NAFEM Dollar Sales Plummet to $84.1m, Naira Dips to N1,537/$
On Friday, the Nigeria Autonomous Foreign Exchange Market (NAFEM) witnessed a substantial decline in dollar sales, plummeting to $84.1 million from the previous day’s $331.1 million, representing a 74% drop.
Concurrently, the value of the Nigerian naira depreciated, falling to N1,537 against the US dollar compared to N1,498 recorded in the preceding trading session.
Data sourced from the FMDQ Security Exchange revealed that the drastic reduction in forex turnover at NAFEM reflects dwindling activities in the foreign exchange market.
Despite the participation of entities such as commercial banks, the Central Bank of Nigeria (CBN), oil firms, and multinationals in dollar sales, the overall transaction volume experienced a notable contraction.
Throughout the week, the forex supply at NAFEM exhibited fluctuations. It commenced with a modest supply of $116.11 million on Monday, surged to $381.92 million on Tuesday, but regressed to $117.87 million by Wednesday.
Thursday witnessed a slight recovery with supply climbing to $336.11 million.
Market analysts attributed the depreciation of the naira to intensified demand for dollars driven by speculation and individuals seeking foreign currency for various purposes including business, tourism, education, and healthcare.
The widening gap between official and parallel market rates raises concerns about potential round-tripping activities.
Despite recent CBN interventions and policy directives aimed at enhancing forex supply and curbing malpractices, challenges persist in the forex market.
The evolving dynamics underscore the need for sustained efforts to stabilize the currency and foster confidence in Nigeria’s financial ecosystem. As stakeholders monitor market developments, attention remains focused on implementing effective measures to mitigate forex volatility and sustain economic stability.
Dollar to Naira Black Market Exchange Rate Today 19th December 2023
What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 19th, 2023, the dollar to naira exchange rate is 1 USD to 1235 NGN at the black market.
This means that for every one US dollar, you can exchange it for ₦1235, Investors King reports.
This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
How Much is Dollar to Naira Today in the Black Market?
This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦1235 and ₦1230 as of the time of writing today.
What is the current exchange rate of the dollar to naira in the black market today?
According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦1235 and sold for ₦1230.
Exchange Rate of Dollar To Naira in Black Market Today?
|Dollar to Naira (USD to NGN)
|Black Market Exchange Rate Today
Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks
Investors King understands that although the dollar to naira opened at N1235 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.
On Tuesday, December 19th, 2023, individuals in the black market purchased one US dollar for N1230 and sold it for N1235. This shows that the value of the Naira declined when compared to Monday, December 11th, 2023 when the local currency was exchanged at N1190 to a Dollar and a Dollar was purchased at N1180.
To stay informed about the dollar to naira exchange rate, there are several reliable sources that you can turn to. Here are some tips for staying up-to-date:
- Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
- Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
- Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
- Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.
By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.
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