Connect with us

Business

CBN Lists Benefits Of Digital Currency

Published

on

BREAKING: CBN Raises Interest Rate To 14% To Tame Rising Inflation

The Central Bank of Nigeria (CBN) has listed the benefits of adopting its soon to be launched digital currency, e-Naira.

Folashodun Shonubi, the bank’s deputy governor in charge of operations, spoke at a seminar hosted by the Chartered Institute of Bankers of Nigeria in Lagos, themed ‘Central Bank Digital Currencies: Insights for the 21st Century Banker.’

“The Central Bank in its implementation has ensured the e-Naira feeds our economy and provides greater value,” Mr Shonubi said. “The Central Bank Digital Currency (CBDC) will also make it easier for the banking system to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system.”

Mr Shonubi stated that the e-naira would prove safer than “privately issued cryptocurrency”, he adds that the launch of digital currency would complement existing payment pathways, thereby ensuring a stable system.

READ ALSO: Ukraine Becomes Latest Country To Legalize Bitcoin

“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic era. I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them,” Mr Shonubi said.

The CBN had earlier announced the launch of its digital currency (e-Naira) pilot programme in October. He also spoke on the importance of eNaira in Africa’s largest economy that included cross-border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social interventions.

In August, the apex bank had chosen Barbados-based financial tech company Bitt Inc. as the technical partner for the eNaira project. Nigeria’s adoption of digital currency and trade follows a trend of central banks worldwide deliberating on whether to adopt digital currencies in their countries.

READ ALSO: CBN Sets Date For Takeoff Of Nigeria’s Digital Currency

The e-Naira project came months after the CBN banned the trade of digital assets in the country, instructing banks to shut down accounts of customers involved in cryptocurrency transactions. The action was widely criticised as throwing the country of about 200 million back to the dark ages, especially as Nigerians had already gained worldwide recognition as critical cryptocurrency traders.

 

Read more authentic news on our social media platforms

Continue Reading
Click to comment

Business

Debt Profile Under Buhari Worrisome – CBN

Published

on

Yoruba Leader Writes Buhari, Seeks Talks Over Emergence Of Yoruba Nation

Nigeria’s increasing debt profile under President Muhammadu Buhari is a source of worry to the Central Bank of Nigeria ( CBN) .

This was disclosed in a communique by the CBN’s monetary policy committee  released on Wednesday.

“The committee noted the Federal Government’s increasing debt profile and expressed concerns over debt sustainability given that global uncertainties remain elevated”, the apex said.

The financial regulator urged the federal government to take on urgent measures to cope with debt burden.

READ ALSO: ASUU Strike May End Soon As Buhari Gives Education Minister Adamu Deadline

“The MPC thus reiterated its call to the Federal Government to urgently diversify its revenue sources through various initiatives, such as, the development of a viable tax framework for the extractive and mineral export industries, to strengthen its fiscal buffers.”

As at March 2022, Nigeria’s total public debt hit N41.60 trillion, according to the Debt Management Office.

The Buhari regime has often rebuffed concern about its acute borrowings, justifying that the funds are invested in capital projects with lasting impact.

 

Read more authentic news on our social media platforms

Continue Reading

Business

BREAKING: CBN Raises Interest Rate To 14% To Tame Rising Inflation

Published

on

BREAKING: CBN Raises Interest Rate To 14% To Tame Rising Inflation

As a measure to tame rising inflation, the policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 13 percent to 14 percent.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

READ ALSO: CBN Raises Benchmark Interest Rate To 13%

Addressing journalists on Tuesday after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said the hike in interest rate would help tame rising inflation.

 

Read more authentic news on our social media platforms

Continue Reading

Business

Nigeria’s Inflation Rises Over 18 Per Cent

Published

on

Nigeria's Inflation Rises Over 18 Per Cent

The National Bureau of Statistics (NBC) has said that Nigeria’s inflation rate in the month of June 2022 increased to 18.60 percent on a year-on-year basis.

The recorded increase in June is 0.84 percent points higher compared to the rate recorded in June 2021, which is 17.75 percent.

This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (June 2021).

Increases were recorded in all COICOP divisions that yielded the Headline index.

READ ALSO: Ghana Workers Get 15 Per Cent Pay Rise To Cushion Inflation

On a month-on-month basis, the headline inflation rate increased to 1.82 percent in June 2022, this is 0.03 percent higher than the rate recorded in May 2022 (1.78 percent).

The percentage change in the average composite CPI for the twelve months period ending June 2022 over the average of the CPI for the previous twelve months period is 16.54 percent, showing a 0.62 percent increase compared to 15.93 percent recorded in June 2021.

 

Read more authentic news on our social media platforms

Continue Reading

Top Stories

%d bloggers like this: