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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Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.

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

Published

2 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.”