Zambia set to join Nigeria, Ghana in digital currency adoption

Published

3 years ago

March 4, 2022

The Bank of Zambia (BoZ) has revealed that the country may introduce a central bank digital currency (CBDC) in the formal financial system.

Nigeria’s central bank (CBN) earlier in February outlawed banks and financial institutions from transacting or operating in cryptocurrencies, saying they posed a threat to the financial system.

The CBN joined a growing list of emerging markets betting on digital money to cut transaction costs and boost participation in the formal financial system.

Zambia will join Nigeria and Ghana as pioneers of digital money in the African continent.

According to BoZ acting assistant director of communications, Nkatya Kabwe, the bank has been conducting feasibility studies on CBDCs and would be completing them soon.

Mr Kabwe told Bloomberg that Zambia seeks to improve this and boost its economy by launching a CBDC.

He explained that the central bank believes that a CBDC could increase traceability, safety, and efficiency of the country’s payment systems.

Mr Kabwe expects the bank to complete this study by the fourth quarter of this year.

“The results of the research will form part of the input in the policy considerations on whether to introduce a central bank digital currency in Zambia,” he told Bloomberg.

However, the central bank recently issued a warning against digital currencies, reminding the public that it doesn’t recognize them as legal tender.

Related Topics:Bank of Zambia Featured Zambia

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Ezz al-Arab appointed as Egypt’s CIB chairman

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

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Nigerian inflation falls again, drops to 32.15% in August

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.