Forex Market Outlook for the Week July 23 – 27, 2018

collected by :John Locas

The concerns as regards trade wars rose following warnings from both the International Monetary Fund and the prominent investor Larry Fink. The key economic data releases from around the world include the Euro Zone interest rate decision and the preliminary U.S. GDP figures for the second quarter. The data for the month of June 2018, which completes the second quarter, is set to be released. This volatile data is expected to bounce back, registering an increase of 2.7 percent in June. It is expected to register a small increase of 0.5 percent in June.

Liberia: Confusion in Forex Market over 'Lack' of Common Exchange Rate

Monrovia – There is confusion on the currency market in Liberia; at the moment it is unknown what exchange rate is being used to exchange U.S. dollar for Liberian dollar. The Central Bank of Liberia (CBL), commercial banks and operators of forex bureaus all use self-determined rates. The exchange rate also varies in the various commercial banks. They accused the Central Bank of failing to announce a new exchange rate since holding a consultative meeting with them on Wednesday. He has also announced the introduction of licensing requirements for all foreign exchange bureau.

Iran Launches Secondary Forex Market to Help Ease Dollar Shortage

as mentioned in The Iranian Central Bank has established the secondary currency market to allow exporters of non-oil goods to sell their foreign currency earnings to importers of consumer products as part of Tehran's strategy to ease conditions amid the resumption of US sanctions. Iranian Central Bank governor Valiollah Seif said the secondary currency market would help "minor importers" buy their dollars, and emphasized that the price of the dollar would be set according to market supply and demand, Press TV has reported. The move will allow some 20% of the dollars from the export of non-oil products (also excluding steel, petrochemical and minerals) to be sold in the secondary currency market at rates mutually agreed upon by exporters and importers. As of mid-2018, the rial has dropped by well over half compared to mid-2017's rate of 37,700 rial per dollar. Iran has sought to reduce dependence on the dollar via a package of measures, including increased trade using the euro and other currencies.