Naira moves up again as EU introduces new 50 euro note

By Odunewu Segun

Reacting to the Central Bank of Nigeria injection of about $240 million into the FX market on Monday, the Naira strengthened against the dollar yesterday, Tuesday, April 4 at the parallel market, National Daily has gathered.

The Naira traded at N390 to a dollar as against the N395 it went for a greenback on Monday, April 3. Meanwhile, it maintained the rates it traded against the Pound Sterling and Euro, exchanging for N480 and N415 respectively.

At the official market, the currency appreciated by 0.02% against the dollar to close at 306.25.

Reacting to the new trend, Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria has predicted the further appreciation of the Naira as BDCs set to receive more Diaspora remittances.

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Gwadabe said that the improved inflows of Diaspora remittances into the economy in spite of falling oil prices would fast-track rates convergence and unification.

Meanwhile, new 50 Euro banknote, the fourth in the “Europa series’’ issued by the European Central Bank began circulating on Tuesday.

The 50 Euro is the most widely used euro note denomination which accounts for 46 per cent of all euro banknotes, with more than nine billion of them in circulation.

ECB President Mario Draghi said at the official launch that cash was essential to any economy even in this digital age. “Holding a euro banknote and knowing that it can be used in 19 countries is a reminder of the deep integration Europe has attained,” the ECB president said.

According to Draghi, support for the single currency now has been comparable to the highs recorded in the pre-crisis period, in spite of the difficulties in recent years.

The ECB planned to issue new 100 and 200 euro banknotes by the end of 2018, whereas the new series would not include 500 euro banknote in view of concerns that the note could facilitate illicit activities.