CBN announces cash withdrawal policy
On Tuesday, 6th of December, the Central Bank of Nigeria (CBN) issued new guidelines on cash withdrawals made through POS, ATMs and over-the-counter (OTC) for Nigerian residents and businesses in furtherance of its cashless policy. According to the apex bank, individuals and corporate organisations are now restricted to N100,000 and N500,000 weekly withdrawal limits, respectively. Withdrawal above the limits would attract a 5% processing fee for individuals and a 10% processing fee for businesses. Although the news sent heated debate across the board in the West African nation, the CBN is determined to stick with the plan.
In a recent statement to the Senate Committee on Banking, Insurance and other Financial Institutions, the CBN Deputy Governor on Financial System Stability, Aishat Ahmad, noted that former President Goodluck Jonathan introduced the policy in 2012 during his regime. The new policy would help drive the cashless economy agenda while advancing the rapid adoption of the e-Naira.
Biden, Africa and the G20
On Friday, 9th of December, United States President Joe Biden announced plans to support the African Union’s admission to the G20 group of the world’s largest economies as a permanent member. The announcement follows a quest to do something historically different for Africa, in contrast to the glaring hostility shown to the continent by the past administration of President Donal Trump.
According to White House adviser Judd Devermont, Biden will officially make this declaration during the U.S-Africa Leaders Summit in Washington in the coming days. Reuters reported Devermont saying: “we need more African voices in international conversations that concern the global economy, democracy and governance, climate change, health, and security”.
COVID-19 gains foothold in China
Recent news reveals a surge in the spread of the COVID-19 coronavirus virus in China. The news comes a few days after the government eased its widely criticised “zero COVID” strategy. The strategy, which has been in motion for a while, only allowed people who tested COVID-19 negative to have free movements in public places.
According to top epidemiologist Zhong Nanshan, “the (current) Omicron mutation … is very contagious … one person can transmit (the virus) to 22 people.” Nanshan noted that the virus was spreading rapidly in China. “Under such circumstances, no matter how strong the prevention and control is, it will be difficult to cut off the transmission chain completely,” he said. Currently, “hundreds of thousands or tens of thousands of people are infected in several major cities in China.” What is the fate of emerging markets like Africa if this strain finds its way to the continent?
ICYMI: Market roundup
- The NGX All-Share Index rose by +517.50 (+1.07%) last week, 9th of December, to close at 48,881.93 points.
- The top gainers include Prestige Assurance (+9.52%), BUA Cement (+9.17%), Thomas Wyatt Nigeria (+9.09%), Wapic Insurance (+8.82%) and Pharma-Deko (+8.11%). The top decliners were Unity Bank (-9.26%), S C O A Nigeria (-9.20%), Japaul Gold & Ventures (-6.90%), Livestock Feeds (-4.31%) And Chams (-4.17%).
- The Nigerian naira started the week at N443.99/ $1 to close the week in a decline at N444.97/ $1.
- Brent crude closed the week at $76.82, while US West Texas Intermediate (WTI) crude closed at $71.02.
- According to data from Coinmarketcap, the global cryptocurrency market cap stood at $850.52 billion, a 0.49% decrease over the last day as of Sunday, 11th of November. Bitcoin dropped by 0.02 % to trade at $17,121.91, Ethereum dropped by 0.30% to trade at $1,262.85, and Binance Coin rose by 0.08% to trade at $285.59.
- Moove, a Nigerian-based mobility fintech has raised a $30 million debt round from a debut Sukuk issuance to fund expansion into UAE.
- Synatic, a South Africa-based data automation startup has raised a $2.5 million seed extension round to grow its footprint in the United States.
- Egyptian e-commerce startup SIDEUP, which provides a suite of services for e-commerce businesses, has raised a $1.2 million seed round for Saudi expansion.
- Uncover, a Kenyan skincare startup has raised $1 million in seed capital to scale up its operations in Kenya and to expand across Africa.
