Weekly Economic Index: Nigeria Suspends CBN Governor, Global

Kwame Malik

Global Courant

Nigeria suspends, detains central bank governor

Nigeria is new President-elect Bola Ahmed Tinubu has suspended Central Bank (CBN) Governor Godwin Emefiele for investigative purposes. The Department of State Services (DSS) confirmed that the suspended governor of the CBN is now in custody for investigative reasons.

Earlier this year, Emefiele defended the naira swap policy and other monetary reforms that sparked a cash crisis in the country’s last February general election. Although the CBN governor had argued that the policy was introduced to curb vote-buying and election malpractice, supporters of Tinubu accused the governor of sabotaging their election campaign. As it stands, only a vote of no confidence by the Senate can remove the CBN governor from office.

Slow global economic growth

The World Bank says global growth is slowing sharply due to high inflation, higher interest rates, reduced investment and the fallout from Russia’s invasion of Ukraine. Global growth is expected to slow to 1.7% from the 3% expected six months ago. According to the latest news from the bank Global economic outlookthe global economy is expected to grow by 1.7% in 2023 and 2.7% in 2024. The sharp slowdown is expected to be widespread, with 2023 forecasts revised downward for 95% of developed economies and nearly 70% of emerging markets and developing economies.

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Unfortunately, emerging economies are at risk of economic setbacks. “Emerging and developing countries are facing a multi-year period of sluggish growth driven by heavy debt and weak investment as global capital is absorbed by advanced economies facing extremely high sovereign debt and rising interest rates,” said David Malpass, president, of the World Bank Group. “Weak growth and business investment will exacerbate already devastating reversals in education, health, poverty and infrastructure and the increasing demands of climate change..

Nigeria ends illegal Binance operation

The Nigerian Securities and Exchange Commission (SEC) has shut down Binance’s operations in the West African state. Binance is one of the largest cryptocurrency exchanges in the world with authentic processes. But the SEC mentioned that a local unit courting Nigerian investors through a website was illegal. According to the report by Reuters, the company was not registered or regulated, making it illegal.

Two years ago, the CBN issued a circular to direct money banks (DMBs), non-banking financial institutions (NBFIs) and other financial institutions (OFIs) to close accounts of individuals or entities involved in cryptocurrency transactions within their systems . It cited concerns about money laundering, terrorist financing, cybercrime and the volatility of cryptocurrencies as reasons for the ban. But a few weeks ago, the country’s capital market regulator issued new laws regulating the issuance, exchange and custody of digital assets in the country.

ICYMI: Market overview

The Nigerian Exchange Group opened trading on the stock market on Monday, June 5. The NGX All-Share Index fell -0.05% (-27.98) and ended the week on Friday, June 9 at 55,930.97.

The top winners were Omatek Ventures +10.00%, NEM Insurance +10.00%, Golden Guinea Breweries +9.88%, Chams +9.52% and FTN Cocoa Processors +9.41%.
On the other hand Conoil -9.95%, Associated Bus Company -9.30%, Sovereign Trust Insurance -9.09%, Sunu Assurances Nigeria -8.51% and Courteville Business Solutions -8.00%.
The naira rose to close out the week at N459.47/1$ on Friday compared to the N464.67/1$ recorded the previous week.
Brent closed the week up $75.04, while US West Texas Intermediate (WTI) crude closed up $70.17.
The global cryptocurrency market cap was $1.06 trillion at 7:43 PM on Sunday, June 11, 2023. Bitcoin was at $25,966.13 (down 4.54% in 7 days), Ethereum was at $1,757.46 (down 7.56 % in 7 days) and Binance coin stood at $237.25 (down 22.47% in 7 days).
from Nigeria helium health Raise $30 million Series B funding to expand fintech offerings.
Egyptian e-health startup Rology acquires Saudi firm Arkan United.

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Weekly Economic Index: Nigeria Suspends CBN Governor, Global

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