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October 27, 2022 Decision To Redesign Naira Positive For Economy – Experts

Decision To Redesign Naira Positive For Economy – Experts

Some financial experts have commended the Central Bank of Nigeria (CBN) for its decision to redesign the naira, saying that it would have positive effect on the economy.

The experts spoke in separate interviews with the News Agency of Nigeria (NAN) in Abuja on Thursday.

They spoke against the backdrop of announcement by the CBN that new designs of the N200, N500 and N1,000 denominations would be produced and circulated on Dec. 15.

According to Prof. Umhe Uwaleke, a financial economist and professor of capital market at the Nasarawa State University, Keffi, the decision will be positive for the economy in the medium to long term.

Uwaleke said the measure would go a long way to ensure that the naira in circulation outside the banking system were brought into the banking system.

He said the measure would also provide enough liquidity for banks, and more money for the banks to lend.

“The measure does not amount to demonetisation of big currency notes often carried out by central banks to curb black money and corruption.

“But it will go a long way in ensuring that a lot of naira notes circulating outside the banks are crowded in.

“If it leads to large deposits in banks, it means the banks will have more money to lend which may reduce interest rates.

“Perhaps more importantly, with increased currency in circulation now in the vault of banks, I expect to see improvement in monetary policy transmission,” he said.

Uwaleke said it might also have the effect of reducing speculative attacks on the naira in the parallel market in the medium term.

“I expect that the Financial Intelligence Unit will be on the look out for huge deposits as a way of monitoring illegitimate transactions.

“Despite the huge cost involved in changing currency notes, I think it’s time to sanitise the system, especially now that electioneering activities have kicked off,” he said.

He, however, said the deadline of Jan. 31, 2023 was too short, considering the number of naira denominations involved, urging the CBN to consider extending it.

An economist, Dr Tope Fasua, also said the measure would have significant effect on the economy, adding that it was essentially about “black money.”

He suggested that the CBN should take such measures more frequently.

“When central banks do this, they try to pull in monies people are hiding; illegal money, corruption money, kidnapping money. Nigeria has managed to become a hub for these kinds of illegalities.

“I will even suggest that the CBN does this more often, maybe every 10 years. You will see a scenario where the banks are awash with liquidity.

“There are many people sitting on billions in naira, and even in dollars. The CBN should also see how it can pull in the dollars,” he said.

Fasua advised that the idea of individuals operating personal domiciliary bank accounts should be banned, adding that nobody needed it.

“People are speculating against their own currency in their own country. That is not allowed in any economy.

“They should pull in illegal, black naira and then see how they can pull in illegal dollars. The CBN can control these things through the Deposit Money Banks,” he said.

However, Mr Okechukwu Unegbu, a financial expert, and past President of the Chattered Institute of Bankers of Nigeria (CIBN), said redesigning the naira was not the most important problem facing the economy.

Unegbu, said the apex bank should have simply ensured that the scarce lower naira denominations, like N100 and N200 were readily available by printing more.

October 7, 2022 Crypto Scammers Steal $100m From Binance

Crypto Scammers Steal $100m From Binance

Scammers stole $100 million in bitcoin from Binance, the world's largest cryptocurrency exchange, the company claimed on Friday.

On Twitter, company CEO Changpeng Zhao stated that "an exploit" in the system resulted in increased creation of the exchange's specialized currency, adding, "The current effect estimate is over $100m."

"The problem has been resolved. Your money is secure. "We apologize for the inconvenience and will give more updates as needed," he stated.

It is one of the largest cryptocurrency robberies in history, however it pales in comparison to the massive robbery of more than $500 million from the Axie Infinity blockchain game earlier this year.

Scammers are increasingly exploiting flaws in "cross-chain bridges," which allow investors to transfer funds from one blockchain to another.

Blockchains are digital ledgers that contain transaction information – the most famous is bitcoin, but there are many of others.

Changpeng Zhao said that the theft was the result of "an exploit on a cross-chain bridge, BSC Token Hub," assuring clients that it had been resolved.

According to the Reddit conversation, the sum taken was between $100 and $110 million, with $7 million already returned.

The Axie Infinity theft and another robbery of over $200 million on crypto company Nomad last month both involved bridges being hacked.

Bridge attacks, according to Chainalysis, a crypto research outfit, have already responsible for about $2 billion in thefts this year.

In its latest crime report, Elliptic stated that bridges "tend to gather enormous sums of locked assets on several blockchains, many of which may not have sophisticated security or auditing cultures owing to their relative obscurity."

"In the past, this has made bridges an appealing target for hackers," it continued.

September 28, 2022 Stocks, Oil Drop, Dollar Gains Amid Recession Fears

Stocks, Oil Drop, Dollar Gains Amid Recession Fears

Equities and crude prices dipped Wednesday, while the dollar stayed at multi-year highs, as recession worries deepen. Traders are particularly concerned about relations with Russia, which declared victory in contentious Ukraine annexation polls.

Investors are also keeping a tight eye on London, after new finance minister Kwasi Kwarteng's tax-cutting mini-budget last week sent shockwaves through markets, sending the pound to a record low and prompting catastrophic predictions for the British economy.

While Asia witnessed tiny increases, New York and Europe ended mainly in the red, with Wall Street shocked by statistics indicating a surprising increase in US consumer confidence — presumably due to a drop in gasoline costs — and a boost in house sales.

Despite three consecutive big Federal Reserve rate rises — and forecasts for another in November — as it seeks to curb four-decade-high inflation, the statistics indicated resiliency in the world's top economy.

Several Fed members have lined up this week to reaffirm their intention to maintain raising rates until inflation is brought under control, even if it means risking a recession.

Observers now predict that borrowing costs will peak at roughly 4.75 percent next year, and some policymakers believe they will remain high for some years.

The threat of such restrictive monetary policy has harmed stocks, with US 10-year Treasury yields – a measure of future interest rates – reaching four percent for the first time since 2010.

The Dow and S&P 500 ended down Tuesday, though the Nasdaq enjoyed a slight uptick.

Asia resumed its downtrend Wednesday, with Hong Kong down more than three percent, while Seoul, Taipei, and Manila sank more than two percent. Tokyo, Shanghai, and Singapore were off more than one percent.

There were also losses in Sydney, Wellington, and Mumbai.

London, Paris, and Frankfurt all opened down.

September 21, 2022 Buhari Appoints Dembos As NTA Director-General

Buhari Appoints Dembos As NTA Director-General

Mr. Salihu Dembos has been appointed as the Director-General/Chief Executive Officer of the Nigerian Television Authority by the President, Major General Muhammadu Buhari (retd.).

Alhaji Lai Mohammed, Minister of Information and Culture, announced in Abuja on Wednesday.

He stated that the position is for three years in the first instance.

Mr. Dembos was the NTA's Executive Director of Marketing before his appointment.

Mr. Dembos has worked in the media for over 20 years.

Among other positions, he has held the positions of General Manager of two NTA stations in Lokoja and Kano, as well as Zonal Director of the NTA in Kaduna.

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