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Tag: Central Bank

  • LCCI tasks FG on prudent fiscal measures, investment friendly tax policies to tame inflation

    LCCI tasks FG on prudent fiscal measures, investment friendly tax policies to tame inflation

    The Lagos Chamber of Commerce and Industry (LCCI) has urged government to adopt prudent fiscal policy measures and investment friendly tax policies that work in tandem with the efforts of the Central Bank of Nigeria (CBN) to tame inflation.

    The President of LCCI, Mr Gabriel Idahosa, said this at the Chamber’s first quarter of 2024 news conference on Thursday in Lagos.

    Idahosa said that the quarterly event was the Chamber’s traditional model of engaging in public policy advocacy to drive a stronger economy and a better enabling business environment.

    He said through macroeconomic diagnostics and reviews, the briefing highlights areas of opportunities, concerns and provide recommendations to government on policies that can better empower the private sector to economic development.

    The LCCI president said that headline inflation continued its upward trend in December 2023, rising to 28.92 per cent compared to 26.72 per cent recorded in September 2023, 2.20 per cent higher.

    He noted that the inflationary pressures were primarily attributed to food and non-alcoholic beverages; housing, water, electricity, gas and other fuel; clothing & footwear; transport and furnishing & household equipment and maintenance.

    Idahosa averred that increasing monetary policy rate has, thus far, proven to be insufficient in taming inflation.

    This, he said, therefore, meant that there was a clear need for the government to strengthen its support to critical sectors like agriculture, road infrastructure, power, energy and other key sectors.

    He, however, projected that should government be able to address main drivers of inflation including food and transportation in 2024, the transportation component of inflation was likely to come down.

    “This is because we can see the efforts being made to put buses on the road that are more gas or electric.

    “Borno now has a large fleet of these vehicles and a number of companies in Nigeria are embracing producing gas powered buses.

    “Should this trend from now month by month continue, there would show a decrease in cost of public transportation.

    “Given the fact that Dangote has started refining fuel, we do not expect to see a dramatic reduction in price of oil but we expect some reduction as we won’t spend dollars taking crude out or bringing it back.

    “What that means is that sometime in the year, you won’t see further dramatic rise in inflation,” he said.

    Idahosa said that the global economy in 2023 proved more resilient than expected in the face of significant monetary tightening, continuing policy uncertainties, multiple shocks from conflicts and climate change.

    He, however, noted that domestically, Gross Domestic Product (GDP) reports in 2023 showed quarterly growth that indicated a weak and fragile economy.

    The LCCI president projected that in emerging market and developing economies growth was projected to remain steady at about 3.9 per cent in 2024.

    He, however, stated that growth was expected to remain divergent in the region due to an array of global and domestic currents.

    Idahosa recommended that the Federal Government urgently address the structure of the power sector particularly, with focus on the transmission segment.

    This, he said, was needed to attract private sector investment into electricity transmission to bring in relevant financial, technical, and management capacity.

    “The Federal Government needs to step up efforts to address the security challenges that have negatively affected investment inflows and improve the security measures adopted in tackling the menace of oil theft and vandalism.

    “On agriculture sector growth, we urge the federal government to improve security and intensify the implementation of the national agricultural extension policy with focus on improved and relevant agricultural technologies.

    “The cost of logistics has gone up due to the poor state of our roads and the inadequate connectivity amongst farms, factories, and markets.

    “The LCCI commends the Federal Government for the recent effort to attract private investment into the infrastructure sector. We also expect improved implementation of the capital funding allocated to infrastructures in 2024 budget.

    “While the CBN embarks on monetary tightening to tame inflation, it should ensure that targeted concessionary credit to the private sector is sustained for Micro, Small and Medium Enterprises (MSME),” he said.

    He noted that the LCCI and the media had come a long way in shaping the nation’s economy through policy advocacy and engagements.

    Idahosa expressed hope that the relationship remained sustained as the chamber strives to create a more conducive investment climate for the benefit of all stakeholders.

  • CBM revokes licenses of 13 forex companies

    CBM revokes licenses of 13 forex companies

    The Central Bank of Myanmar (CBM) has announced the revocation of licenses from 13 foreign currency exchange companies.

    This decision was made during a meeting of the central bank’s executive committee on Monday, following the companies’ failure to comply with the bank’s rules and directives.

    This move came after a similar action taken last month when the central bank also revoked licenses from 10 forex companies for not adhering to its established rules and directives.

    The central bank’s reference exchange rates on Monday stood at 2,100 kyats per U.S. dollar, 2,299.7 kyats per euro, and 289.23 kyats per yuan, respectively.

  • Central bank governor to end term without successor

    Central bank governor to end term without successor

    Lebanon’s veteran central bank governor, Riad Salameh, is set to end his term on Monday without a successor.

    Salameh, 73, who has been in the post since 1993, was seen inside the central bank waving at some employees who had gathered to bid him farewell, local media reported.

    Salameh, whose term officially ends at midnight (2200 GMT) on Monday, is under investigation in Germany and various other European countries as well as in Lebanon for several suspected financial crimes.

    The governors along with the ruling political class in the country have been blamed for the country’s worst economic crisis.

    The government has so far failed to name a successor due to the deep differences within the political class.

    The World Bank has described Lebanon’s economic crisis, which started in 2019, as among the most severe in the world since the mid-1800s.

    Since 2019, the Lebanese pound has lost more than 95 per cent of its value.

    Under Lebanese law, Salameh would be replaced temporarily by the central bank’s first vice-governor, Wassim Mansouri, until a new successor is named.

    Mansouri vowed in a press conference that he would not sign off on any expenditure for financing the government if it contravenes with his principles or the appropriate legal framework.

    “Parliament should pass a law allowing the central bank to lend to the government, and the government should pay back the loans through a realistic plan,” he said.

    Lebanese lawmakers have failed in several attempts to elect a head of state for the crisis-hit country, amid deep divisions between politicians loyal to the pro-Iranian Hezbollah movements and their rivals.

  • Climbing the Mount Everest of eternal life – By Femi Aribisala

    Climbing the Mount Everest of eternal life – By Femi Aribisala

    “How badly do we want eternal life?”

    Jesus is walking down the road, and there is this strange man in flowing white agbada running after Him.  The man is running like a mad man.  He is running and shouting.  What could possibly be the matter?

    But wait a minute.  The man running after Jesus is no ordinary man.  He is actually the Governor of the Central Bank.  He is the one reported by Forbes Magazine to be the one of the richest men in Nigeria.  What then is the meaning of this?  How can a man of that stature be running madly down the road?

    Rich men don’t run

    Have you ever seen a rich man running before?  God forbid!  Rich men don’t run.  They stroll.  Rich men don’t run after anybody.  Men run after them.  If a rich man wants to talk to someone, he simply sends his servant to get him.  But this particular situation is different and peculiar.  One of the richest Nigerians is running madly after Jesus in the street.

    When he finally gets to Jesus, what does he do?  That is the most incredible part.  When he gets to Him, he falls down on his knees and pleads with Him.

    You don’t mean it!

    The Governor gets on his knees on the road in front of everybody?

    Yes, he does.

    What does he want?

    Obviously, he wants something only Jesus can give.

    The rich young ruler in the bible is a representative Christian.  He is a wonderful child of God.  His heart is in the right place.  He is not slothful in business.  He is fervent in the spirit; serving the Lord.

    But there is a need in his life, and it is urgent.  There is a need in his life, and it is great.  It is a pressing need.  So pressing, he forgets he is a big man.  So pressing, he forgets he is a rich man.  So pressing, he forgets he is wearing a white lace agbada and the street he is kneeling in is muddy and dirty.

    Seeking Jesus

    I know you have run after a bus before.  It was the first bus in a long while, and you just had to catch it.  I know you may have run after a woman or man before.  You were smitten, head over heels in love.  But have you ever had to run after Jesus?  Have you run after Him and the quicker you ran; the faster He walked?  Have you ever run after the Lord until you were completely out of breath?

    Have you ever run after the Lord, until you made a complete fool of yourself?  Have you ever run after the Lord, until you lost your dignity, your pride, and self-respect?  Have you ever run after the Lord until you became completely broken?  Have you ever run after the Lord, naked and not ashamed?

    My prayer is that you would find it in your heart to do this, so that you might inherit the kingdom of God.

    Orthodox Christians cannot stand people who run after Jesus.  They are uncomfortable with them.  They believe they are overdoing things.  Never mind that Bartimaeus is blind.  “Is that why he should be crying after Jesus like that?  Is he the only one with a problem?  Of course, we all have problems.”  “Sister Fernandez, take it easy now.  Lord Jesus, please send her away; she is making a nuisance of herself.”

    Just think of that woman who comes to Jesus kneeling down and kissing His feet.  She is washing His feet with her tears and wiping His feet with her hair for heaven’s sake.  Don’t you think that is a little much?  Could you really do that?

    “My Lord, King David, do you think it is dignifying for the king of Israel to be dancing like that?  Your Excellency, you made such a fool of yourself before every Tom, Dick, and Harry.”

    “Sister Bisi, how idiotic you were in church today, crying and rolling on the ground.  Don’t you have any self-respect?  Were you not concerned about indecent exposure?”

    If you are one of those who justifies yourself before men, then the move of the Holy Spirit is not for you.  God only honours those who honour Him, and He honours them with Himself.

    Seeking the kingdom

    The rich young ruler, the Governor of the Central Bank if you will, runs after Jesus like a mad man.  When he finally catches up with Him, he goes down on his knees in the muddy street.  What does this man want? Clearly, he wants something money cannot buy.

    The man does not ask Jesus for bread.  He does not ask him for fish.  He does not ask for long life.  He does not ask for even greater riches.  He does not ask for the life of his enemies.  He is not looking for a wife, a job, accommodation, or promotion.  He is not looking for signs and wonders.  He has one urgent desire; he wants to inherit eternal life.

    How badly do we want eternal life?  Do we want it badly enough?  Then we need to open our mouths and tell the Lord.  The kingdom of God suffers violence and the violent take it by force.  We must let Him know that, should He return today, He must not leave us behind.  We are going with Him on the first flight.  Father; the one thing we desire from You is to spend eternity with You.

    Please do not let us miss this common salvation.  Please do not let us despise this unspeakable gift of God.  Let Your mercy rejoice against Your judgment in our case.  Please Lord; let us not fail to inherit You.  Help us to labour to enter into Your rest.

    Let he who thinks he stands take heed lest he falls.

    Presumptuous Christians

    Our representative Christian, the rich young ruler, wants to know what he needs to do to inherit eternal life.  But the road to hell is paved with good intentions.  Jesus tells him: “You know the commandments; how about trying to obey them?”  Have you tried fulfilling those requirements and succeeded?  Haven’t you, O great Christian, already discovered that you could not do what God requires?  Why are you here asking for more things to do?  Have you done those ones you already know about?

    The man is a Christian; so he should not have been so ignorant of the ways of the Lord.  He should have come to Christ in defeat.  He should have come saying:

    “Lord Jesus; I have tried my very best, but alas, have come short of the glory of God.  I have done all I can, but to no avail.  I have tried not to get angry but have lost my temper.  I have tried not to be covetous but could not help but wish I were the one who got a new car and not my brother.  I have tried to remain pure in heart but could not help but look at a woman lustfully.”

    “I need You to help me.  I need You to deliver me.  Lord Jesus, what can You do for me?  How can You deliver me from this bondage to sin?”

  • Australian central bank keeps monetary policy unchanged

    Australian central bank keeps monetary policy unchanged

    Australia’s central bank maintained its interest rate as well as bond purchase programme on Tuesday, as widely expected, as these measures continued to help the economy by keeping financing costs very low.

    The policy board of the Reserve Bank of Australia headed by Governor Philip Lowe decided to leave its cash rate unchanged at a record low of 0.10 per cent.

    The central bank retained the target yield on the 3-year Australian government bond at around 0.1 per cent and also maintained the parameters of the Term Funding Facility and the government bond purchase programme.

    The bank said the initial 100 billion Australian dollar (76 billion dollar) government bond purchase programme was almost complete and the second 100 billion Australian dollar programme would commence next week.

    Beyond this, the bank was prepared to undertake further bond purchases if doing so would assist with progress towards the goals of full employment and inflation, the bank said.

    The RBA signaled that the interest rate would not be raised until 2024.

    “The Board will not increase the cash rate until actual inflation is sustainably within the two to three per cent target range.

    “For this to occur, wages growth will have to be materially higher than it is currently.

    “This will require significant gains in employment and a return to a tight labour market. The board does not expect these conditions to be met until 2024 at the earliest,’’ RBA said.

    Regarding housing market, the bank said it would be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained amid rising housing prices and low interest rates.

  • India central bank cuts interest rates to boost economy

    India’s central bank on Thursday unexpectedly lowered interest rates and, as anticipated, shifted its stance to “neutral” from “calibrated tightening” to boost a slowing economy after a sharp fall in the inflation rate.

    The monetary policy committee (MPC) of the Reserve Bank of India cut the repo rate by 25 basis points to 6.25 per cent, as predicted by only 21 of 65 analysts polled by Reuters.

    Most polled respondents expected the central bank to only change the stance to neutral.

    Four of six members of the MPC voted to cut the rates, while all six voted for a change in the stance.

    “Investment activity is recovering but supported mainly by public spending on infrastructure. The need is to strengthen private investment activity and buttress private consumption,” the MPC said in a statement.

    Indian shares pared gains while 10-year bond yields slid 5 basis points after the surprise rate cut.

    The Indian rupee weakened to 71.69 to the dollar immediately after the announcement but strengthened soon after to 71.42.

    India’s last rate cut, to 6.00 per cent, was in August 2017.

    Thursday’s cut is welcome news for Prime Minister Narendra Modi’s government, which wants to boost lending and lift growth as it faces elections by May.

    The ruling Bharatiya Janata Party is already in an election mode. In its budget on Feb. 1, the government doled out cash to farmers and tax cuts to middle-class families, at the cost of a wider fiscal deficit and larger borrowing.

    Economic growth fell to a worse-than-expected 7.1 per cent in the July-September quarter from 8.2 per cent, dragged down by slower consumer spending and farm growth, below analysts forecast for a 7.4 per cent increase.

  • EFCC moves for interim forfeiture of Bankers Warehouse’s $2.8m

    The Economic and Financial Crimes Commission, EFCC, Enugu Zonal Office, has filed a motion at a Federal High Court, Enugu, seeking an order for the interim forfeiture of the $2.8million seized from two men last week.

    Also filed is an affidavit of urgency for the matter to be heard on December 27, 2018, before a vacation Judge sitting in Port Harcourt.

    The Commission on December 20 arrested two persons, Ighoh Augustine and Ezekwe Emmanuel, along with the money at Akanu Ibiam International Airport, Enugu.

    The duo said they work for Bankers Warehouse. But EFCC suspected they were money launderers.

    The suspects told the EFCC they have been in the business of moving cash for “some notable banks”, for over six years and that the money they had was for Union Bank Plc, located at New Market, Onitsha, Anambra State.

    The EFCC spokesman , Tony Orilade said on Monday that Union Bank or its officials were yet to step forward to establish their claim.

    “Efforts are being made to secure warrant for the detention of the suspects pending when they will be charged to court”, he said.

    Bankers Warehouse in a statement at the weekend claimed ownership of the money and asked the EFCC to apologise and return the money.

    The company which said it is licensed by the Central Bank of Nigeria to carry out Cash/Asset movement and Currency Processing said the men arrested were not involved in any money laundering and were carrying out a legitimate movement of cash.

    “We hereby state emphatically that the movement of this currency was a legitimate exercise, being carried out on behalf of a legitimate Financial Institution,” the company said..

    “We emphasize that our employees are in no way criminals, carrying out any act of illegality as the EFCC has tried to portray. The young men whose character and reputation have been deliberately soiled by the EFCC operatives were conducting their legitimate duties as requested by a bank customer of our company.

    “We request for the swift and immediate release of our employees and our customer’s currency, both detained without proper cause.

    “We also demand an immediate retraction by the EFCC and an apology issued to our company and our employees whose images have been maligned”.

  • Gambian president, Adama Barrow fires central bank chief, 3 deputies

    President Adama Barrow on Wednesday fired Gambia’s central bank governor and three other bank officials considered loyal to former dictator Yahya Jammeh, a senior official at the bank said Wednesday.

    Central bank governor Amadou Colley, two of his deputies and the bank’s financial director, who all served during Jammeh’s iron-first rule, received their letters of dismissal.

    Central Bank senior officer Nuha Barrow told dpa that the dismissals are part of Barrow’s attempts to re-establish democracy in the small Islamic republic and depose those who held high positions during Yammeh’s 22-year rule.

    Since he took office on Jan. 19, Barrow ordered the dismissals and arrests of numerous security, intelligence and government officials.

    Jammeh, who caused weeks of political impasse by refusing to accept the result of the December 2016 election, stands accused of having committed wide-ranging human rights violations during his presidency, including torture, killings and abductions.

    After weeks of regional pressure and the threat of arrest by West African troops who had entered Gambia, Jammeh eventually conceded defeat and went into exile in Equatorial Guinea.

     

     

    NAN

  • Surging Bitcoin breaks through $1,000 barrier

    Surging Bitcoin breaks through $1,000 barrier

    ImageFile: Surging Bitcoin breaks through $1,000 barrier1The value of Bitcoin surged above $1,000 on Monday as the digital unit continues a dizzying rise that made it the best-performing currency of 2016.

    Its value has more than doubled in the last year and it was trading at around $1,024 in afternoon European trading on Monday, after breaking through the $1,000 mark on Sunday.

    It is now within reach of its historic high of more than $1,200 reached in 2013.

    Some analysts believe the rise in Bitcoin is due to some investors treating it as a safe-haven, like gold, at a time of global uncertainty.

    Others believe buying is being driven by speculative demand, with investors anticipating future rises and creating an unsustainable bubble.

    Bitcoin was launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto.

    Earlier this year secretive Australian entrepreneur Craig Wright said that he was the creator, but some have raised doubts over his claim.

    Supply of Bitcoin is limited and it trades in cyberspace. As well as being an investment for some, it is also used for illicit transactions beyond the reach of law enforcement for drugs or arms on the internet.

    Its value has fluctuated wildly since its creation, with news of a major Bitcoin theft by hackers in August sending its price plummeting by more than 20 percent.

    Unlike traditional currencies such as the dollar or the euro, which require the sponsorship of a central bank, Bitcoin is decentralised.

    Encrypted digital coins are created by supercomputers and then traded online or exchanged for goods and services by a network of users.