VenturesNow

After unbanning cryptos, Nigeria plans to launch own stablecoin in 2024– Report

Published

12 months ago

December 29, 2023

Following the recent uplifting of the prohibition on cryptocurrency and other virtual asset transactions, the Nigerian government is set to launch its first regulated Naira stablecoin called, cNGN.

In its latest policy on the subject last week, Nigeria’s central bank announced that financial institutions were now permitted to open Virtual Assets Provider (VAP) accounts, offer designated settlement accounts and settlement services, serve as conduits for trade and foreign exchange, and perform any other function that the bank may from time to time permit.

A consortium consisting of Nigerian banks, fintechs, and blockchain companies are developing the new stablecoin, cNGN, which will comply with the rules established by the stakeholders, according to a Forbes report.

In contrast to earlier stablecoin drafts, the Nigerian Naira would be owned by Nigerian banks and function as legal tender. It would be pegged at 1:1 to cNGN.

The cNGN is expected to launch in 2024; unlike previous iterations, which were digital money, it will function as a cryptocurrency similar to other stablecoins.

Despite attempts by regulators to restrict access, the use of cryptocurrencies has continued in Nigeria as users look for other ways to transact. The country came in at number six on the 2021 Global Crypto Adoption Index, which was released in October 2021 by the blockchain analytics company, Chainalysis.

The depreciation of the naira, inflation, and lack of access to traditional finance are the main factors driving the use of cryptocurrencies. According to an April report, in 2022, over 33% of Nigerians between the ages of 18 and 60 who participated in a survey conducted by cryptocurrency exchange, KuCoin, were cryptocurrency investors.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”