E-Financial
FXTM Analysis: FXTM June Major Assets Roundup
Pushed to the cliff’s edge over the last six months of speculation and negative sentiment, the GBPUSD finally toppled off the verge on June 24th, the day after the Brexit vote was confirmed.
Plunging to levels last seen in 1985 during the ensuing panic sell-off, the GBPUSD fell to the level of 1.3234 from a high of 1.4974 earlier in the month.
Although the UK is not in the Eurozone, the implications of the wider European Union economic bloc without the UK partnership has also impacted heavily on the Euro.
The EURUSD fell from a high of1.135 mid-month to a low of 1.099 after the vote, while the GBPEUR dived steeply from a high of 1.3132 to a low of 1.1991. UK travellers are expected to find their Sterling cash worth much less across most major exchange rates, at the very least for the short-term.
The Gold price soared amid the uncertainty, taking off from $1260/ounce on June 23rd to over $1330 by June 24th. Investors stayed true to form during the market crisis, and rushed to buy up the safe-haven asset, while selling off the ones with higher risks.
Black gold – WTI Crude Oil – was also caught up in the sell-off, dropping to a low of $47/barrel from a high of $52 in the immediate aftermath of the Brexit shock.
The storm’s epicentre may have been the UK, but it spread fast and furiously across the world markets. Emerging market currencies suffered short-term wave crests in the storm before stabilising.
The USDIDR bucked from 13,333 to 13,550, throwing off the calming reins placed by Bank Indonesia’s new measures, namely an interest rate benchmark of 5.5 percent.
Due to the risk aversion in the markets and sudden loss of risk appetite following the unexpected shock from the EU referendum result, all of the emerging market currencies declined with this including the Indonesian Rupiah.
The reason was not too due to Brexit outcome having a direct impact on the local economy, but because reduced risk appetite encourages investors to be less attracted towards the emerging markets.
The local currency has since then regained losses, however it is possible that global economic uncertainty will linger for some time following this vote and this would mean there could be risk aversion in the markets at a later date.
The news of a possible tax cut is going to dominate the news locally within Indonesia, with the advantage to such an initiative being that the government is clearly trying to ease disposably income in the hope of higher domestic spending.
Of course and like the regular easing from the Bank Indonesia, these initiatives are targeted to improve domestic spending and GDP growth at a time where the economy is slowing down due to external risks.
The Ringgit blinked in shock as well. The USDMYR jumped from 3.9500 to 4.0900 in the immediate aftermath of the Brexit.
The volatility smoothed out somewhat thanks to Malaysian Prime Minister NajibRazak’s timely statement. The PM said that he did not expect that the Brexit would have a significant impact on the Malaysian economy, and that fiscal reforms would continue to be furthered.
The Malaysian Ringgit has been on a wild rollercoaster as of late, suffering steep losses as a result of the EU referendum shock to then regain all momentum around one week after the outcome. The EU referendum outcome is going to lead to a period of uncertainty in the markets that is likely to fuel risk aversion at a later stage, which in turn could negatively impact the Malaysian Ringgit.
It is still very difficult to pinpoint which direction the local currency is heading in next, and it should be remembered that the Federal Reserve have still not publically commented on how this could impact US interest rate policy.
The bright side to this is that if the Fed do postpone any possibility of future rate rises, then it might pull investors back towards the emerging markets where there is the benefit of higher interest rates.
The USDCNY was jolted from 6.5800 to 6.6900. It was to be expected that China’s currency could face challenges in the wake of the Brexit, but on the other hand, there is also speculation that China’s stock markets and larger business centres could gain some business if it starts flowing out of London.
The UK’s capital is expected to lose some power as a worldwide business and financial centre, mainly because of the gigantic tangle of legal and trading uncertainties presented by the Brexit.
The CNY is continuing to play down the expectations,as we believed it would do as the second half of the year approached.
The period of uncertainty now in the markets, following the EU referendum shock is going to plague risk appetite, which will be negative for the emerging markets and no EM is alone in withstanding this threat.
There are concerns in the short term that the China economy could be negatively impacted by the UK leaving the European Union, mainly because it is clear that the two governments have formed very close ties over the past two years and any loss of UK stability could impact the UK economy and its ability to maximize China relations.
The bright spot is however that the UK is now going to be forced to diversify trade relations outside of the EU, which is obviously going to present opportunities for the emerging markets because this is one area of the UK economy you would think would be reached out towards.
Obviously, if China has now developed strong relations with the UK then this could work out to their advantage at a later stage.
For the UAE’s Dirham, the main story was the GBPAED exchange rate, which fell from 5.5110 to 4.841 overnight just after the Brexit vote.
The ramifications could include cheaper exports from the UK to the UAE, but more barriers to travellers from the UK to GCC countries, given the stronger AED versus the Pound.
One possible benefit however is that the Brexit has triggered new impetus towards the idea of a free trade area between the UAE and the UK.
I think the plunge in the GBP exchange rate must be very pleasing news to any UK expatriate living in the Emirates right now. Of course, there is the positive aspect that any UAE company could now exploit and import products from the UK at a cheaper price, which might be encouraging to GDP prospects via higher imports at a time when GDP growth will be slipping lower due to depression in the price of oil.
I remain unsure how much further the GBP could fall against the AED in the medium term, not necessarily because there is any reason to be positive on the British currency, but because I don’t think the Federal Reserve are going to be in any position to begin raising US interest rates anytime soon. Any Dollar pressure is likely to lead to AED weakness, due to its peg against the USD.
Looking ahead to July, the market fallout from the Brexit vote is set to dominate, and risk appetite appears to be due for a diet of Gold and short-term profit-taking.
The Securities and Exchange Commission (SEC) has unveiled plans to make sustainability reporting mandatory for large public interest entities from 2027 as Nigeria moves to align its corporate disclosure framework with global environmental, social and governance (ESG) reporting standards.
The phased implementation will begin with voluntary adoption by early adopters and large public interest entities before becoming mandatory in 2027. The requirement will extend to other public interest entities in 2028 and small and medium-scale enterprises (SMEs) by 2030.
Dr Emomotimi Agama, Director-General of the SEC, disclosed this at the 2026 Financial Institutions Training Centre (FITC) Sustainability and ESG Conference 3.0 in Lagos, themed ‘Building a Sustainable Africa: Integrating Environmental Stewardship, Social Investment, and Strong Governance for a Prosperous Future’.
Agama said Nigeria’s sustainability disclosure regime is being aligned with the International Sustainability Standards Board (ISSB) framework, including IFRS S1 and IFRS S2, which have emerged as the global benchmark for sustainability reporting.
He said that institutional investors increasingly consider ESG performance a key determinant of capital allocation rather than a peripheral corporate responsibility issue, noting that the price of entry is disclosure.
He said the reforms would strengthen investor confidence and position Nigerian businesses to access global capital markets, where sustainability disclosures are becoming an essential investment requirement.
According to him, Nigeria’s capital market has recorded significant expansion, with market capitalisation growing from about N130 trillion to nearly N160 trillion following recent market reforms, while assets under management have surpassed N9 trillion.
To deepen sustainable finance, Agama said the commission was promoting infrastructure, green and municipal bonds, alongside infrastructure-focused investment funds, to mobilise long-term capital for critical national projects.
He added that the SEC would also encourage investments in the blue economy and support financing for the power sector through green energy bonds, project bonds and public-private investment structures.
The SEC chief cited the recent launch of the Nigerian Exchange (NGX) Impact Board as another milestone in advancing sustainable finance and urged companies, regulators and investors to move beyond commitments by embedding sustainability into governance, operations and investment decisions.
Managing Director and Chief Executive Officer of the Financial Institutions Training Centre (FITC), Dr Chizor Malize, said sustainability and ESG had evolved from compliance issues to core drivers of business competitiveness, investment decisions and economic development.
She said the conference, now in its third edition since 2024, had become a leading platform for advancing sustainability discourse in Africa, adding that this year’s gathering was designed to move stakeholders “from conversation to commitment”.
Chairman of the FITC Advisory Board, Prof Fabian Ajogwu, described governance as the foundation of sustainable development, arguing that Africa must become a standard-setter rather than merely adopting frameworks developed elsewhere.
Although Africa contributes less than four per cent of global greenhouse gas emissions, he said, the continent bears a disproportionate share of climate-related impacts, including worsening floods and increasingly erratic weather patterns.
Ajogwu also cited estimates that poor governance costs Africa between $88 billion and $90 billion annually, while highlighting technology-driven agricultural initiatives, including a partnership involving Morocco’s OCP Group and the Nigeria Sovereign Investment Authority (NSIA), as examples of practical models that should be replicated across the continent.
Delivering the keynote address, Chairman of the MTN Nigeria Foundation, Mosun Belo-Olusoga, said the debate over the relevance of sustainability and ESG had ended, with the real challenge now centred on implementation.
She observed that global investors increasingly evaluate businesses on governance quality, resilience and their ability to manage environmental and social risks, in addition to profitability.
Belo-Olusoga noted that despite contributing the least to global carbon emissions, Africa possesses vast arable land, abundant renewable energy resources and critical minerals required for the global energy transition.
She identified four leadership priorities for the continent: shifting from short-term performance to long-term value creation, replacing corporate philanthropy with strategic social investment, moving beyond regulatory compliance to responsible leadership, and strengthening collaboration among governments, businesses and development partners.
She also outlined five priorities for Africa’s ESG agenda over the next decade, including embedding sustainability into corporate strategy and governance, investing in human capital, mobilising indigenous capital through instruments such as green bonds and pension funds, strengthening institutional accountability, and fostering partnerships in renewable energy, digital technology and climate-smart agriculture.
“The defining challenge before Africa is not a shortage of vision; it is execution,” Belo-Olusoga said, urging governments to create enabling policies, businesses to integrate ESG into enterprise risk management, and financial institutions to develop innovative financing mechanisms that support a green and inclusive economy.
Nigeria’s Bank Verification Number (BVN) database expanded to 69.55 million as of July 5 2026 from 69.32 million in June 2026, according to latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).
BVN is an 11-digit biometric identification system introduced by the Central Bank of Nigeria and managed by the Nigeria Inter-Bank Settlement System (NIBSS) to secure customer accounts and reduce fraud.
This means that BVN enrolments increased by 228,947 between June and July 5 this year.
With the BVN database standing at 67.8 million as of December 31, 2025, it also means that the database grew by 1.75 million between the end of last year and July 5, 2026.
Specifically, with less than 1.8 million BVN enrolments so far recorded for this year, it is looking highly unlikely that BVN registrations at the end of 2026 will come close to the 4.3 million total registrations recorded in 2025.
Analysts note that while the expansion in the BVN database last year was largely driven by the introduction of the NonResident Bank Verification Number (NRBVN) initiative, which enables Nigerians in the diaspora to do their BVN enrolment remotely, thereby removing physical barriers and boosting cross-border financial engagement, the Central Bank of Nigeria (CBN) in March this year, announced a revised BVN regulatory framework, that saw it introducing stricter controls on suspected fraudulent transactions, BVN enrollment, and data access within the banking system.
According to the regulator, the amendments to the BVN framework, which came into effect on May 1, 2026, were aimed at strengthening fraud monitoring, improving identity management within the financial system and safeguarding the integrity of banking transactions, by strengthening identity verification and ensuring that BVN registration aligns with legally recognised age thresholds.
Thus, under the revised BVN framework, the apex bank introduced a stricter age requirement for BVN enrolment, limiting registration to 18-year-old individuals and above.
Also, under the new framework, customers will only be allowed to change the phone number associated with their BVN once. The CBN further stated: “Under the new guidelines, financial institutions are required to establish and maintain a temporary watch-list for BVNs linked to suspected fraudulent transactions reported within the banking system.
“A BVN may remain on this temporary Watch-list for a maximum period of twentyfour (24) hours, during which the BVN owner shall be contacted to provide clarification regarding the identified transaction(s).”
Launched on February 14, 2014, by the CBN in collaboration with the Bankers’ Committee, the NIBSS, and the German firm Dermalog, the BVN scheme was designed to capture the biometrics of all bank customers and provide each with a unique 11-digit identification number that can be verified across the Nigerian banking industry.
Central Bank of Nigeria (CBN) has reaffirmed that the standard N100 banknote remains legal tender across the country, warning that its rejection by individuals, businesses and institutions violates the law.
The clarification follows reports that some members of the public have refused to accept the standard N100 note over concerns about its legal tender status following the introduction of the commemorative N100 banknote issued to mark Nigeria’s centenary.
In a statement signed by Mrs. Hakama Sidi-Ali, acting director of Corporate Communications, the apex bank stressed that “both the commemorative N100 banknote and the standard N100 banknote are valid legal tender and must be accepted for all transactions nationwide.”
The CBN explained that the commemorative N100 note was introduced to celebrate Nigeria’s centenary and did not replace the existing standard N100 banknote.
The CBN cautioned individuals, businesses, financial institutions and other economic agents against rejecting the standard N100 note, noting that such action contravenes the provisions of the CBN Act and undermines public confidence in the national currency.
It warned that appropriate enforcement measures would be taken against any person or organisation found violating the law.
The apex bank reaffirmed its commitment to protecting the integrity of the naira, maintaining confidence in all duly issued banknotes and ensuring the smooth circulation of currency across the country.
The CBN also urged members of the public to continue accepting and transacting with all banknotes legally issued by the Bank and advised anyone seeking further clarification to use its official communication channels.
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