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Financial Markets Gripped by Monday Jitters

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Risk aversion intensified during early trading on Monday following reports of Italian Prime Minister Matteo Renzi experiencing a crushing defeat in the referendum on constitutional reforms which sparked concerns of renewed political instability in Europe.

The shocking “No” outcome was seen as negative for the Eurozone economy with Matteo Renzi’s resignation opening a path to an early general election in Italy next year. With fears mounting over the “No” camp creating further turmoil for Italian banks, the rising uncertainty could rapidly erode risk sentiments towards the Euro.

Investor’s anxiety continues to rise over Sunday’s referendum results negatively impacting Italy’s membership of the European Union with Euro weakness potentially becoming a dominant theme till year end.

The questionable unknowns concerning Italy’s future have already sparked discussions of the European Central Bank extending its bond-buying program at December’s policy meeting in a bid to reclaim some stability.

Euro bears swiftly exploited the Italian post-referendum uncertainty to send the EURUSD to fresh 21 month lows at 1.050 during Monday’s trading session.

From a technical perspective, this pair is heavily bearish on the daily timeframe as there have been consistently lower lows and lower highs. Previous support around 1.065 could transform into a dynamic resistance which encourages a further decline back towards 1.050.

Sterling Edges Higher
Sterling bulls were slightly inspired ahead of Monday’s heavily anticipated Supreme Court hearing which could determine if Parliament’s approval is required before article 50 is invoked. 2016 has been a chaotic year for Sterling with the ongoing Brexit saga haunting investor attraction towards the currency.

Although the decision for the four-day hearing is due in January, the Pound could be exposed to extreme levels of volatility as market participants systematically offload and reload positions to be on the right side of the winning Brexit trade.

Investors may pay extra attention towards the tone of the hearing with any additional signs of Theresa May invoking the article 50 in March empowering Sterling bears.

Monday’s lacklustre market reaction to the positive services data from the UK continues to highlight how the Brexit woes have seized the spotlight. U.K services rose to 55.2, growing at the fastest pace in 10 months in November but this did little to negate the Brexit fears.

Sentiment is slowly improving towards the UK economy but the ongoing Brexit dilemma that continues to install fear and uncertainty could ensure Sterling remains depressed moving forward.

Although the odds of the Bank of England adding more stimulus continues to diminish amid the improving data, Sterling still remains vulnerable against the resurgent Dollar.

From a technical standpoint, the current technical bounce on the GBPUSD could be capped around the 1.2850 resistance before bears take front once again.

Stock Markets Under Pressure
Global stocks were vulnerable to losses on Monday as the post-Italian Referendum jitters sparked a wave of risk aversion.

Asian shares struggled to maintain gains amid the risk-off with the negative momentum pressuring European markets. With the events in Italy creating further uncertainty, risk-off remains the name of the game this week. Wall Street may be open to losses if risk aversion encourages investors to flee from riskier assets to safe-haven investments.

Oil Bulls Are Back In Town

The lingering impacts of OPEC’s unanticipated market shaking production cut agreement can still be felt across the board with WTI Crude charging to fresh 17 month highs above $52 as of writing.

Sentiment towards Oil has experienced a miraculous turn around overnight with the prospects of a cap in production easing the persistent oversupply concerns.

OPEC’s smart decision to cooperate in the most critical of times may have saved the cartel its credibility with further inclines in oil expected as optimism rises over the oversupply woes being solved.

Investors may direct their attention towards the meeting on the 10th of December where OPEC will meet non-OPEC countries to finalise the global production cut agreement. The success of the pending meeting could propel WTI crude towards $55 in the medium term.


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E-Financial

Confusion as CBN Deletes, Reinstates Tweet Calling Crypto-Related Directive Fake

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Central Bank of Nigeria (CBN) has been forced to deny a report saying it issued a directive requiring all banks and financial institutions to identify individuals or entities engaging in transactions with cryptocurrency exchanges and to ensure that such accounts are put on Post No Debit (PND) instruction for six months.

Confusion as CBN Deletes, Reinstates Tweet Calling Crypto-Related Directive Fake

A “Post No Debit” instruction is a directive issued by a bank or financial institution to restrict certain transactions on a customer’s account.

When a PND instruction is in place, the account holder is prohibited from making debit transactions, meaning they cannot withdraw funds or make payments using the affected account.

Confusion occurred when the central bank denied the story on X but then deleted the denial.

The alleged circular also stated that regulated financial institutions engaged in crypto or facilitating payments for crypto exchanges are prohibited.

However, this contradicts an earlier ban lifted in December 2023, allowing banks to facilitate transactions for crypto exchanges.

The central bank lifted the ban nearly two years after enforcing a comprehensive ban on banks engaging with digital currencies.

According to a statement by the CBN at the time, it recognized that the increasing global demand and adoption of crypto make it unjustifiable to maintain the stringent restrictions imposed on financial institutions in 2021.

However, due to the swift devaluation of the naira and the subsequent inflation rate of 29.9%, the government shifted its attention to platforms offering cryptocurrency services.

It disabled websites associated with crypto trading that had gained notoriety for setting informal valuations for the naira.

Binance encountered significant scrutiny when the CBN raised concerns regarding “suspicious financial transactions” occurring through Binance Nigeria in 2023.

Olayemi Cardoso, governor, CBN, said $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.

Binance is facing further challenges in Nigeria, with its executive Tigran Gambaryan, who is based in the United States, being detained in the country.

He’s facing five charges linked to money laundering following a meeting with Nigerian officials regarding Binance’s regulatory compliance.

Nadeem Anjarwalla, one of the executives who met with Nigerian officials about Binance’s regulatory issues, subsequently escaped custody and was tracked down to Kenya, where he faces extradition.

 


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NDIC Inaugurates Anti-Corruption and Transparency Unit

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Nigeria Deposit Insurance Corporation (NDIC) has inaugurated an Anti-Corruption and Transparency Unit (ACTU) at its headquarters in Abuja.

NDIC Inaugurates Anti-Corruption and Transparency Unit

Speaking at the inauguration which was conducted by officials of the Independent Corrupt Practices and Other Related Offences Commission (ICPC); Mr. Bello Hassan, managing director/chief executive, NDIC, said the corporation has a culture of zero tolerance for corruption, which is further strengthened by its core values of teamwork, respect and fairness, integrity, professionalism, and passion.

Represented by Mr. Mustapha M. Ibrahim, executive director, Operations, Hassan, said, the NDIC ACTU has strengthened the Corporation’s operational system through the implementation of various compliance measures to ensure ethics, integrity, transparency and accountability in the workplace.

He explained that the specific measures include robust Internal Controls, regular Risk Assessments, and strict adherence to regulatory guidelines, and comprehensive training programs for employees.

Hassan described the inauguration as a significant step in the Corporation’s ongoing commitment in the fight against corruption and enhances transparency.

He emphasised that NDIC Management remains committed to supporting ACTU activities, recognizing the unit’s critical role in ensuring the Corporation’s operations are conducted with integrity, free from corruption, and fostering public trust.

Dr. Musa Adamu Aliyu, chairman, ICPC, who was represented by Mr. Olusegun Adigun, acting director System Study and Review, ICPC, praised NDIC management for their dedication and active support in establishing and advancing the activities of the ACTU to address corruption issues and foster ethical practices.

He applauded the efficiency and diligence of the NDIC ACTU in fulfilling its mandate, resulting in the Corporation retaining the first position for two consecutive years on the annual ICPC Ethics and Integrity Compliance Scorecard.

He urged the new ACTU members to see their nomination as an opportunity to build on the good legacies of the previous members and to complement Management’s efforts in promoting the core values of the Corporation through their assigned duties.

 

 


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Moniepoint, Community Pharmacists to Explore Digital Financial Inclusion for Health Industry

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Issues bordering on the need to strengthen the pharmaceutical supply chain and distribution leveraging digital technology, reducing the prevalence of fake medicines exacerbated by the unregulated and uncoordinated open drug market, bringing digital financial inclusion to the forefront of the health industry and achieving Universal Health Coverage, UHC for all Nigerians even in the face of its expanding population and limited human resources for health care have been brought to the fore.

L- R Regional Sales Manager, Moniepoint Inc, Emmanuel Imouokhome, National Secretary, ACPN, Pharm. Omokhafe Ashore, National Chairman, ACPN, Pharm Wale Oladigbolu and Vice President, Sales and Partnerships, Moniepoint Inc, Ifeanyi Duru, Chairman, ACPN Conference Planning Committee, Pharm. Grace Ikani and Lagos State Coordinator, Richard Eseka, during the courtesy call which held at the Moniepoint Inc office in Lagos

These subjects among many were raised during a courtesy visit by some National Executive members of the Association of Community Pharmacists of Nigeria (ACPN) to the Moniepoint Inc office in Lagos. With an average of 480,000 daily footfalls across over 6,000 community pharmacies in Nigeria, the ACPN plays a vital role in Nigeria’s healthcare system as front-line workers who promote public health and well-being, beyond dispensing medications as they serve as trusted healthcare providers within communities, offering valuable advice, counsel, and preventive care.

Leading the ACPN delegation, the National Chairman, ACPN, Pharm Wale Oladigbolu lauded the giant strides made by Moniepoint in providing reliable and seamless digital payment services to community pharmacies across the country adding that some other players in the pharmaceutical still operated primarily with cash, thus limiting their growth potential and financial inclusion.

He noted that Nigeria’s health care industry was ripe for disruption using digital and technological know-how to achieve UHC, social health insurance, supply chain systems and data for policy formulation.

“This visit to Moniepoint today is underscored by our belief that a well structured collaboration between both organizations will produce transformative high yield results and benefit the nation’s healthcare system at large. Such collaborations enhance not only the operational efficiency of our pharmacies but also ensure that our patients and customers benefit from the convenience and security of digital financial services. Integrating financial technology seamlessly into everyday health services, making them more accessible and efficient for all is a noble task that all stakeholders should strive towards achieving,” he said.

Furthermore, he solicited for Moniepoint’s robust participation at the Association’s 43rd annual Scientific Conference scheduled for Ibadan, Oyo State later in the year. He noted that this year’s event will deliver a peerless experience for all attendees in terms of skills and knowledge acquisition, as well as the sporting and entertainment value added initiatives that have been lined up.

Vice President, Sales and Partnerships, Moniepoint Inc, Ifeanyi Duru who expressed his delight at the opportunity to collaborate with the ACPN and deploy the digital financial services provider’s cutting-edge technology to drive greater financial empowerment and inclusion in Nigeria’s healthcare industry.

“Creating financial happiness is our mantra and a more inclusive financial ecosystem that caters to the unique needs of the health industry in Nigeria is in perfect sync with what we stand for at Moniepoint. There is a significant opportunity here to elevate the interests of community pharmacists and give fresh impetus to the way community pharmacies operate by layering tech and digital payments for socio-economic development. The potential impact of this collaborative effort especially in bridging significant gaps in the value chain is huge and one which we relish the opportunity to tackle,” he said.

Notable professionals present during the visit include National Secretary, ACPN, Pharm. Omokhafe Ashore, Chairman, ACPN Conference Planning Committee, Pharm. Grace Ikani, Regional Sales Manager, Moniepoint Inc, Emmanuel Imouokhome, State Coordinator, Richard Eseka, Public Relations Manager, Moniepoint Inc, Bemigho Awala and Brand Story-teller, Emmanuel Paul.

Moniepoint’s comprehensive and easy to use suite of payment, banking, credit, and business management tools continues to empower over 2 million individuals and businesses across the country to thrive and better serve their communities in a manner that drives economic growth and social impact.


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