Business News
CBN Cashless policy will not apply to our Digital Channels – UBA
The United Bank for Africa has reacted to the new cashless policy of the CBN which allows bank customers to be charged for cash deposits.
In a reaction to the policy of the Central Bank of Nigeria (CBN) which allows bank customers to be charged for cash deposits, United Bank for Africa has issued a response, saying that the estimated charges would not apply on any of its digital channels.
This was reportedly disclosed in an email message issued to its customers’ emails where the bank maintained that digital channels like Mobile Banking, Internet Banking, Leo, *919# and the debit cards will be exempted from any deposit charges.
“As part of the effort to drive the cashless policy and enhance the efficiency of the Nigerian payments system, the Central Bank of Nigeria has re-introduced charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. This policy will commence with immediate effect and is in addition to the already existing charges on withdrawals.
The charges will apply when you make cash withdrawals or deposits above N500,000 or N3,000,000 at any UBA branch in Lagos, Ogun, Kano, Abia, Anambra, Rivers States, and the FCT. A nationwide implementation will take effect from March 31, 2020. Please note that transactions through our digital channels (Mobile Banking, Internet Banking, Leo, *919#) and our debit cards, will not be subject to these charges,” the bank said.
What you should know: Recall that the Central Bank of Nigeria (CBN) announced that it would begin to charge bank customers making cash deposits and withdrawals from September 19, 2019. In a circular made available to the public, the apex bank disclosed that the new policy of the transaction fees was designed to reduce cash in use.
The charges, according to the Central Bank, would attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.
[ALSO READ: UBA declares interim dividend for Half-Year 2019]
Newer Developments: Lawmakers also kicked against the policy, describing it as an overbearing burden that could lead to the closing down of majority of micro, mini, small and medium businesses in the country.
One of the lawmakers, who serves as Chairman of the House Committee on Media and Public Affairs, Benjamin Kalu, added that the policy was also aimed at enriching the deposit money banks owned by a privileged few, without any known financial contribution to the consolidated revenue fund of the federation.
Business News
Bitcoin loses $1500 in 3 mins, pigs get slaughtered in BTC market
Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum has the $10,000 resistance mark been broken.
Some hours ago, Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum as the $10,000 resistance mark been broken.
However, during the rally, over $100 million worth of Bitcoin short positions were liquidated as Bitcoin plunged by nearly $1,500 in less than 3 minutes, before rebounding to around $9,458. Bitcoin is trading at $9,540 4 am local time.
Bitcoin’s plunge was bad news for the bulls. By falling back below the $10,000 psychological support, it has shown a likely downward trend as investors start to close their positions.
According to data retrieved from crypto derivatives platform, Skew.com, an approximate $96 million worth of long positions were wiped with this lower move. This is lower than the $125 million liquidation event that took place when BTC took out $10,000 yesterday, suggesting that the market was leaning to such a trend.
(READ MORE:Tether, the most promising stable coin, now the third most valuable cryptocurrency)
Things you need to understand about Bitcoin’s volatility
The price of Bitcoin is so volatile because of its high use for financial gain by investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins like they would do for any other financial asset (Stocks, bonds) with regulatory limitations.
One of the key biases touted by Bitcoin bears is that Bitcoin remains below the key resistance of $10,500 and has refused to break that mark since early 2020.
$10,500 is the level at which the bitcoin price was rejected during two crucial rallies over the past 12 months.
The fact that BTC has made successive takes at the level without breaking past it suggests that the crypto market is still situated in a downtrend.
(READ MORE:Electroneum, a Cryptocurrency, to launch electricity Top-Ups in Nigeria)
Robert Sluymer of Fundstrat Global Advisors, for instance, recently commented on the importance of the level. He said:
“Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week SMA) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-DMA.”
Business News
Brent crude surges past $40, analyst recommends investment in crude oil derivatives
Brent crude gained about 1.49%, at $40.18, 3.30 am Nigerian time – the highest level since March 6, having gained 3.3% on Tuesday.
The price of Brent crude surged on Wednesday to a near three-month high amid optimism among investors and oil traders that major oil producers will extend oil production cut, as global demand picks up.
Brent crude gained about 1.49%, at $40.18, 3.30 am Nigerian time – the highest level since March 6, having gained 3.3% on Tuesday.
A meeting by OPEC+ (a group comprising OPEC, Russia and other major oil producers) is expected to be held virtually on Thursday. The oil production cuts are currently due to run through May and June.
“As virus-related lockdown measures continue to be lifted, we expect that demand will gradually recover,” Capital Economics said in a note to Reuters, estimating that global oil consumption will fall to just under 92 million BPD on average in 2020.
“This compared with 100.2 million barrels per day consumed globally last year,” Capital Economics added before the COVID-19 pandemic disrupted global demand negatively.
(READ MORE: Brent Crude gains 23% WoW, as oil production cut kicks off)
Meanwhile, Adeagbo Adedayo Sadiq, Country Manager, Scope Markets Ltd, spoke to Nairametrics about why it’s time for Nigerians to consider investing in crude oil derivatives, as the macro fundamentals show a bullish momentum in the energy market. He said:
“Taking a closer look at Nigeria’s main commodity export, crude oil. Every day we need the energy to accomplish a lot of tasks from manufacturing down to the food we eat.
“Investing in this energy that is involved in our daily activity is very lucrative.
“As we can see that a lot of events like US/Iran face-off and COVID-19 Pandemic had an impact on the price of crude oil in the first two quarters of the year 2020.
“The oil price benchmark fell to its lowest ever in history as of March 8th, 2020, losing about 90% of its market value for the year 2020. This piece of information is very useful as an investor or to anyone who intends to trade crude oil.
“Currently the price of crude oil has risen to more than 40%. This means that if you had invested in this crude oil futures as when the price was low your investment would have appreciated at that level of gain.
“With additional production cuts announced by OPEC alongside Russia/Saudi price deal, we tend to see further upside in the price of crude oil.
“So while crude oil is appreciating in value at this period, it’s time for anyone who wishes to invest in energy trading to act now.”
Appointments
Standard Chartered appoints Abbass Husain as new Regional Head of Corporate Finance
Husain has nearly 24 years of banking experience, out of which he has spent 17 years at Standard Chartered Bank where he had reportedly led one of the largest and most successful Project & Export Finance teams.
Standard Chartered Bank earlier this week announced the appointment of Abbas Husain as the new Regional Head of Corporate Finance in charge of Africa and the Middle East.
According to a statement that was seen by Nairametrics, Hussain will also combine his new role with that of being the Head of Project & Export for the Middle East, North Africa, and Pakistan. He will be based in Dubai, the statement said.
Husain has nearly 24 years of banking experience, out of which he has spent 17 years at Standard Chartered Bank where he had reportedly led one of the largest and most successful Project & Export Finance teams. Available information also noted that he has a proven track record in the structuring and execution of finance transactions in the power sector, oil and gas sector, metals and infrastructure, and more.
It should be noted that in his previous role, Husain had advised, structured, and executed more than 50 deals thereby raising as much as $100 billion for the company.
He has received many awards, including the Dealmaker of the Year by EMEA Finance for Europe, the Middle East & Africa in 2017. Under his leadership, the MENAP Project Finance business has been recognized industry-wide as the Best Project Finance House in the region over the last few years. He has also been a key contributor to driving the bank’s Sustainable Finance commitment through leadership in the renewables sector
Before joining Standard Chartered, he had stints at Citibank where he managed the portfolio of both multinational corporations and local companies. He also worked with Bank of America as a diversified portfolio manager.
While commenting on Husain’s appointment, Standard Chartered’s Regional Chief Executive Officer for Africa and the Middle East, Sunni Kaushal, said:
“The appointment of Abbas demonstrates the commitment we have made in developing top leadership talent within the bank. We are focussed on the continued growth of our business, and he brings a valuable wealth of experience in successfully advising clients across a diverse range of sectors in our footprint. As we navigate the current COVID-19 crisis, Abbas will play a crucial role in supporting our clients across Africa and the Middle East during this challenging period.”
