Forex

Draghi Signals ECB Unlikely to Stop QE Plan Without Tapering

Published

8 years ago

October 21, 2016

Mario Draghi signaled the European Central Bank probably won’t stop its quantitative-easing program without tapering it first, indicating that the stimulus is likely to run past the currently scheduled end-date of March 2017.

“An abrupt ending to bond purchases, I think, is unlikely,” the ECB president said in a press conference in Frankfurt on Thursday. A sudden stop “is not present in anybody’s mind.”

The comments keep the central bank on track for a potential extension of its bond-buying program, as predicted by economists. Draghi said the Governing Council didn’t discuss prolonging or tapering in this policy meeting, while noting that the publication of fresh economic forecasts in December, as well as the results of internal studies on options to avoid running into bond shortages, will help the decision then.

“Everyone expects him to do more but it’s hard, given what he said today, to be sure in any way of what they are going to do in December,” said Richard Barwell, an economist at BNP Paribas Investment Partners in London. “There is this constant angst now of ‘will they, won’t they?’ They would be in a much better place if they described what is their plan given current conditions.”

Inflation Path

Bloomberg News reported this month that ECB policy makers have built an informal consensus that QE will be gradually wound down once the decision is taken to end the program.

Earlier on Thursday, the 25-member Governing Council reaffirmed that asset purchases will continue to run at the pace of 80 billion euros ($88 billion) per month until March 2017, and in any case until policy makers see a sustained pick-up in inflation toward its goal of just under 2 percent. Officials left the main refinancing rate unchanged at zero and the deposit rate at minus 0.4 percent.

The euro initially climbed as much as 0.6 percent before giving up those gains. The single currency traded down 0.5 percent at $1.0921 at 5:17 p.m. Frankfurt time, near the weakest since June. Euro-area bond yields also rose before heading lower.

“He really wanted to shut down any suggestion that the ECB is going to taper any time soon, but what he actually did was to tell people to come back in December and see what the ECB thinks then,” said James Athey, a money manager at Aberdeen Asset Management Plc in London. “That will leave enough unanswered questions to keep bond markets volatile. An already nervous market will not take much comfort from his obfuscation today.”

Draghi noted that there is no “convincing upward trend” in underlying inflation, adding that “we want a convergence which is self sustained, without the extraordinary policy support in place now.”

He said earlier this month that consumer-price growth will probably be near the target by late 2018 or early 2019. The ECB’s current projections, which see inflation at 1.6 percent in 2018, are built on expectations of “additional monetary policy measures,” according to an account of last month’s council meeting.

The ECB’s committees are currently reviewing their options for tweaking the rules of the QE program to allay concerns that it will run out of bonds to buy. Draghi said the Governing Council took stock of that work and that it wants “to see all inputs for this discussion” before taking a decision.
Click here to watch Draghi’s news conference in full.

The euro area faces a “moderate, steady recovery, and a gradual rise in inflation in line with previous expectations” but with risks to the downside, he said. “We remain committed to preserving a very substantial degree of monetary accommodation.”

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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

Dollar to Naira Black Market Exchange Rate Today 4th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 4th, 2024 stood at 1 USD to ₦1,400.

Published

1 day ago

May 4, 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 4th, 2024 stood at 1 USD to ₦1,400.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,380 and sold it at ₦1,370 on Friday, May 3rd, 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.

How much is dollar to naira today in black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,400
Selling Rate: ₦1,390

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.

Naira

Black Market Dollar Rate Reaches ₦1,380 Today, May 3rd, 2024

US dollar to Nigerian Naira exchange rate as of May 3rd, 2024 at the black market stood at 1 USD to ₦1,380

Published

3 days ago

May 3, 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 3rd, 2024 stood at 1 USD to ₦1,380.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,350 and sold it at ₦1,340 on Thursday, May 2nd, 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.

How much is dollar to naira today in black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,380
Selling Rate: ₦1,370

Naira

Dollar to Naira Black Market Today, May 2nd, 2024

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

May 2, 2024

Samed Olukoya

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 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 N1,310 and sell it at N1,300 on Monday, April 29th, 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.