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E-Financial

Doha Failure Sparks Market Jitters- FXTM

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An undeniable feeling of disappointed engulfed the global markets during trading on Monday following the unsuccessful Doha meeting on Sunday which erased any remaining credibility OPEC had to offer.

Despite Iran’s absence in the meeting, expectations were high for a freeze deal to be struck, but the visible dispute between Saudi Arabia and Iran sabotaged all efforts consequently causing WTI crude to plunge more than 5%. While realistically the effects of an output freeze would have had a minimal impact on the supply glut, even a symbolic gesture from OPEC to deal with the oversupply could have boosted optimism for future deals.

This string of events almost suggests that the major players in the cartel had no real intention of curbing production, but simply exploited the explosive levels of volatility to manufacture speculative boosts in prices based on false expectations.

Sentiment remains bearish towards oil, and with market participants losing hope in the ability of OPEC to work together in battling the excessive oversupply in the markets; bearish investors have been provided a platform to install another round of selling.

The last time oil prices sunk to the 13 year lows of $26.20 in February, oil producers felt the pinch and prices may need to trade back below $25 for desperation to kick in which could force a real output deal to be struck.

With the fundamentals of an unrelenting oversupply in the markets still present and concerns that demand may be waning, WTI crude remains heavily depressed.

Expectations are rapidly fading over the cartel working together and this should leave prices vulnerable in the short and medium term.

From a technical standpoint, the steep decline experienced in Monday’s session could provide enough momentum for WTI crude to trade back towards $38.

Stock Markets Sink
Global stock markets tumbled during trading on Monday following the disappointing Doha meeting that renewed a wave of risk aversion, consequently limiting investor risk appetite.

Asian markets were at the mercy of the meeting’s failure with previous gains relinquished as a re-established appetite for the safe-haven Japanese Yen dragged the Nikkei -3.4% lower. The bearish contagion from Asia ventured into Europe and may likely affect America as investors frantically scattered away from riskier assets to safe-havens.

With concerns over the state of the global economy already elevated, this Doha disappointment adds to the horrible mix of events that have periodically eroded global sentiment.

Oil prices may be poised for further declines as the markets drown in the oversupply and this should expose stock markets to more pain.

ECB Press Conference Looms
The Eurozone continues to be trapped in an ongoing battle with very low inflation levels, while tepid economic growth in Europe has left the European Central bank under noticeable pressure to take further action.

A catalytic combination of falling commodity prices and eroding global growth have obstructed the ECB’s 2% inflation targets with the central bank possibly trimming inflation forecasts once again amid the ongoing global woes. Sentiment remains bearish towards Europe and with the International Monetary Fund slashing Eurozone growth forecasts it seems likely that the ECB may unleash further stimulus measures to jumpstart growth.

A short period of Dollar appreciation may have created a higher low on the EURUSD at 1.1250 which could potentially offer an opportunity for bullish investors to install another round of buying momentum.

This pair remains remarkably bullish and the paradigm shift that has seen investors flock to the EUR, amid risk aversion, could act as an attribute which ensures that prices remain buoyed. From a technical standpoint, prices are trading back towards the daily 20 SMA while the MACD has crossed to the downside.

A breakout above 1.1300 could invite a further incline towards 1.140, on the condition that the 1.1250 support defends.

Commodity Spotlight – Gold
Gold bulls were offered a welcome boost following the Doha disappointment which renewed a wave of risk aversion and consequently encouraged investors to flock to safe-haven investments.

Despite the sharp declines in prices last week, the current change of developments coupled with ongoing concerns over slowing global growth could provide a foundation for bullish investors to install a fresh round of buying.

With ongoing Dollar vulnerability acting as the final ingredient for bulls to take the front seat once again, a solid break above $1240 should clear a path towards $1250.

From a technical standpoint, prices are trading above the daily 20 SMA while the MACD has crossed to the upside.

Potential resistance at $1240 could transform into a dynamic support for a drive up towards $1250.

Lukman Otunuga is a Research Analyst at FXTM

 


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E-Financial

Naira Gains Strength, Hits N1,600/$ in Parallel Market

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The naira appreciated to N1,600 per dollar in the parallel market at the close of trading hours on Monday, strengthening from N1,610 per dollar recorded over the weekend.

Similarly, the naira saw a slight gain in the Nigerian Foreign Exchange Market (NFEM), trading at N1,605 per dollar compared to N1,606 last Friday, according to data from the Central Bank of Nigeria (CBN). This represents a marginal N1 appreciation.

As a result, the gap between the parallel market and official exchange rate widened slightly to N5 per dollar, up from N4 over the weekend.


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E-Financial

CBN Spending on Naira Printing, Distribution up by 306 Percent

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Central Bank of Nigeria (CBN) spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.

CBN Spending on Naira Printing, Distribution up by 306 Percent

Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.

The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.

The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.

Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.

Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.

Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.

Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.


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E-Financial

PalmPay Reaffirms Commitment to Advancing Contactless Payments

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PalmPay, a full-service digital bank, has reaffirmed its dedication to advancing the future of payments in Nigeria by promoting the widespread adoption of contactless-enabled payment terminals.

This was made known during the recently concluded BusinessDay Future of Payment Conference, themed “Fintech Evolution: Gateway to Payments.” In his welcome address, BusinessDay Publisher, Frank Aigbogun, emphasized that the next phase of fintech innovation must be driven not only by speed, safety, and simplicity but also by trust, inclusion, and accessibility to ensure broad-based impact across all segments of society.

Talking about PalmPay’s impact in the panel session titled “The Next Wave of Digital Payments: Trends and Innovation,” Ifeanyi Uzoka, Senior Business Development Manager at PalmPay, discussed the evolving landscape of digital payments in Nigeria.

He noted that while regulatory frameworks have supported the introduction of contactless payments, the high level of cash dependency remains a key barrier to widespread adoption.

“At PalmPay, financial inclusion is central to everything we do,” Uzoka stated. “To support this mission, we’ve launched contactless-enabled debit and premium cards, ensuring our users have access to convenient and secure payment experiences. We also understand that trust is critical, which is why all contactless transactions on PalmPay’s platform include an additional layer of authentication for enhanced security.”

PalmPay continues to lead innovation in Nigeria’s digital finance ecosystem by delivering secure, user-friendly, and future-ready solutions. The company’s recently launched debit and premium cards in partnership with Verve are now serving its growing base of over 35 million users nationwide.

This move into contactless payments underscores PalmPay’s alignment with global payment trends and its ongoing commitment to building a more inclusive and digitally empowered economy.

 


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