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Yellen Inspires Dollar Bulls

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Sentiment towards the US economy was elevated on Friday following the hawkish comments from Janet Yellen which bolstered expectations over the Federal Reserve raising US rates in 2016.

Investors were gifted the clarity long sought when Yellen suggested that the case for raising US rates had strengthened in recent months consequently uplifting the Dollar.

For an extended period, domestic data from the States has followed a positive path while the easing Brexit anxieties continue to provide some leeway for the central bank to take action.

While there have been ongoing talks of September being a live meeting to raise US rates, it seems likely that the Fed waits for further positive domestic data to justify raising US interest rates in December.

With the Jackson Hole meeting dispelling the period of uncertainty, the Dollar could trade higher as bets mount over the Fed breaking this tradition of central bank caution. Focus may be directed towards the pending all-important U.S non-farm payrolls report this week which if exceeds expectations could provide another compelling reason for the Fed to act.

The Dollar Index surged with ferocity on Friday following Yellen’s comments which renewed hopes of the Fed pushing the button. Although prices are currently in the boundaries of still being bearish on the daily timeframe, a breakout above 96.00 could entice bulls to send prices higher.

Global Stocks Still Pressured
Stock markets were vulnerable to losses last week as the combination of Dollar strength and renewed hopes over the Fed raising US rates enticed sellers to install repeated rounds of selling. Asian markets have already started Monday on a shaky footing and this could trickle into European markets later today.

Although the period of uncertainty over when the Fed may raise rates has been dispelled, the persistent concerns over the global economy and depressed oil prices could ensure stocks remain depressed moving forward.

With the attributes of a bear trend still visible, it could take an unexpected catalyst to trigger a heavy selloff in global stocks.

Commodity Spotlight – Gold
Gold violently vibrated between losses and gains on Friday before sinking lower following Janet Yellen’s hawkish comments which heightened hopes of a US rate hike this year.

This metal remains extremely sensitive to US rate hike expectations and could be poised for further declines if bets mount over the Fed breaking the tradition of caution by raising rates. Even if risk aversion attempts to keep the precious metal buoyed, the viscously appreciating Dollar may simply cap further upside gains.

From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has crossed to the downside. Bears are currently in control and a decisive break down below $1315 could open a path towards $1285.


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E-Financial

FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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Stanbic IBTC, Standard Bank, Listed Among Top African Corporate Brands

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Stanbic IBTC Holdings PLC and its parent company, Standard Bank, have emerged amongst the top winners of the 2020 Tech Times’ Africa LinkedIn Corporate Brand Awards.

The Stanbic IBTC Group emerged the second position in the category, with total votes of 3,515, out of 24 firms nominated for the award. Standard Bank placed the fourth 2,494 votes.

Nominations for this award opened to the public on July 1, 2020 and closed on July 14.

Shortlisted nominees were announced on August 24 while voting commenced immediately and voting ended on September 8, 2020.

The Corporate Brand Awards was instituted by Tech Times’ Africa, an online platform for leading technology, innovation, and startup stories.

Expressing his delight on the awards, Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, said that both Stanbic IBTC Holdings PLC and Standard Bank had been deliberate and consistent in making a remarkable impact in Africa’s financial sector.

“Our sincere appreciation goes to the organisers of the Africa Corporate Brands Awards and to every member of the public who voted. This is a reflection of the high level of trust and confidence that the public has reposed on us,” he added.

Dr Sogunle further said that Stanbic IBTC Holdings PLC would remain relentless in portraying the organisation as one of the most influential corporate brands in Africa.

He stated: “Stanbic IBTC Holdings PLC and Standard Bank have relentlessly contributed to driving the growth and development of the African financial ecosystem. These awards affirm our efforts, and we are encouraged to raise the bar continually.”

The Africa Corporate Brand Award is designed to identify and recognise outstanding companies. It also projects their achievements and impacts on African society and the world at large.


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