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Euro Falls to 10-month Low After Italy Debt Selloff



Euro currency
  • Euro Falls to 10-month Low After Italy Debt Selloff

The euro fell on Tuesday to a 10-month low after a selloff in Italy’s debt market drove investors to dump the single currency.

A deepening political crisis in Italy, the euro zone’s third biggest economy, provoked selling of Italian assets and the euro that was reminiscent of the euro zone debt crisis of 2010-2012.

But the impact was not felt as keenly on currency markets as in Italian government bonds which suffered their worst day in more than 25 years.

Italy’s president has set the country on a path to fresh elections by appointing a former International Monetary Fund official as interim prime minister, with the task of planning for snap polls and passing the next budget

Investors fear a polarising election campaign which could deliver a deeply eurosceptic government, threatening the bloc’s cohesion.

The euro has fallen 4 percent this month amid a resurgent dollar and rising concerns over the euro zone’s political and economic situation.

The currency slipped on Tuesday below $1.16 for the first time since November 2017 to hit the 10-month low of $1.1510 and weakened significantly against the safe haven Swiss franc and Japanese yen.

The Danish crown, which is pegged to the euro, strengthened 0.1 percent against the single currency in a further sign of a fallout from Italy.

“A surging dollar has weakened the euro but now it is all about risks from Italy and the impact the crisis there could have on the European Central Bank’s monetary policy,” said Commerzbank analyst Ulrich Leuchtmann.

“The underlying problem here isn’t Italy, though, but a fundamental question about the euro zone, a political experiment lacking a fiscal union which can fail if fair growth and wealth are not achieved,” he said.

Financial markets expect the ECB to wind down its 2.55 trillion-euro stimulus programme by the end of this year and raise its policy interest rate towards the middle of next year.

Weaker-than-expected economic data out of the euro zone, however, has raised questions about that.


Viraj Patel, a currency strategist at ING in London, noted that the spillover effect on the euro from the Italian bond markets was limited but said that could change if the selloff forces investors to dump other peripheral debt.

The euro is set for its biggest monthly drop in more than three years, according to Thomson Reuters data.

The closely-watched Italian-German 10-year bond yield spread, seen by many investors as an indicator of sentiment towards the euro zone, was at its widest level since June 2013..

With a decline in U.S. Treasury yields also weighing, the dollar dropped about 0.6 percent on Tuesday to a three-week low of 108.730 yen.

On Monday the dollar rose briefly to 109.830 yen as U.S.-North Korea summit plans appeared back on track.

The dollar index against a basket of six major currencies was up half a percent on the day at 95.025, hitting a 6-1/2 month high.

But the renewed dollar strength was less a function of increasing U.S. inflation expectations than a mirror image of euro lows, said Ken Odeluga, a market analyst at City Index.

The Australian dollar, sensitive to shifts in risk sentiment, was down 0.3 percent at $0.7525.

Analysts at MUFG said that if tightening financial market conditions abroad begin to feed back into the U.S. domestic economy, that could become a problem for the Federal Reserve.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira Hits Eight-Month High at 1,120/$ Amidst Central Bank Reforms



New Naira Notes

The Nigerian Naira has surged to an eight-month high of 1,120 against the US dollar on the parallel market, commonly referred to as the black market.

This significant appreciation comes on the heels of a series of foreign exchange (FX) reforms initiated by the Central Bank of Nigeria (CBN), which have effectively unlocked dollar liquidity within the economy.

According to data compiled from online platforms and street traders, the current exchange rate reflects a gain of 62.95% for the Naira against the dollar compared to its level of 1,825 per dollar in February 2024.

Market sentiment suggests that the recent strengthening of the Naira can be attributed to a subdued demand for the US dollar, coupled with ample liquidity in the market, particularly during the holiday period.

Despite a decline in external reserves, Nigeria’s currency strengthened to 1,230.61 per dollar on the official FX market before the holidays.

The recent uptick in the Naira’s value follows the CBN’s decision to review the exchange rate for Bureau De Change (BDC) Operators to 1,101 per dollar from 1,251 per dollar.

Also, the CBN announced plans to sell $15.88 million to 1,588 eligible BDCs, further bolstering dollar liquidity in the market.

The CBN’s proactive approach to FX management, including the resolution of foreign exchange backlogs amounting to US$7 billion, has instilled confidence among investors and market participants.

Furthermore, the apex bank’s commitment to implementing reforms aimed at enhancing transparency and efficiency in the FX market has yielded positive results.

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Zimbabwe’s Gold-Backed Currency Surges 0.2% Against US Dollar



Zimbabwe’s newly introduced gold-backed currency, known as ZiG, surged by 0.2% against the US dollar on its second day of trading.

This development has sparked both cautious optimism and renewed concerns about the nation’s financial stability.

The Reserve Bank of Zimbabwe reported that the exchange rate for ZiG strengthened to 13.53 per US dollar, compared to its initial rate of 13.56 per dollar on its debut trading day.

The slight but significant uptick in value comes as a welcome sign for Zimbabwean authorities who have been striving to establish a functional local currency amid persistent economic challenges.

The ZiG currency, introduced as the country’s sixth attempt to stabilize its monetary system, is backed by 2,522 kilograms of gold and approximately $100 million in foreign currency reserves held by the central bank.

This gold backing is seen as a crucial step to restore confidence in Zimbabwe’s currency after years of hyperinflation and currency instability.

Despite the positive momentum witnessed in the currency market, the transition to ZiG has not been without its hurdles. Banks, retailers, and utilities across the nation have been grappling with the logistical challenges of adopting the new currency, leading to disruptions in commerce nationwide.

Many businesses are still in the process of updating their systems to accommodate ZiG transactions, causing delays and confusion in payment processing.

The Zimbabwean government has set a deadline of April 12 for businesses to fully transition their electronic systems to ZiG.

However, reports indicate that only a third of the financial institutions linked to the national payments platform have been able to process ZiG payments effectively, highlighting the ongoing challenges facing the currency transition.

While the surge in ZiG’s value against the US dollar offers a glimmer of hope for Zimbabwe’s economic prospects, experts caution that sustained stability will depend on factors beyond short-term fluctuations.

Market confidence, effective monetary policies, and structural reforms will all play crucial roles in determining the long-term viability of the ZiG currency and the broader economic recovery efforts in Zimbabwe.

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Dollar to Naira Black Market Today, April 9th, 2024

As of April 9th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,200 NGN in the black market, also referred to as the parallel market or Aboki fx.



New Naira notes

As of April 9th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,200 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 N1,240 and sell it at N1,230 on Monday, April 9th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,200
  • Selling Rate: N1,190

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