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E-Financial

Naira softens against Dollar on parallel markets

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By Lukman Otunuga, Research Analyst at FXTM

 

The Naira eased slightly against the Dollar on the parallel markets as geopolitical concerns weighed on emerging market currencies.

 

Reports of Nigeria’s foreign exchange reserve falling by $2.1 billion in 30 days compounded downside pressures with the Naira trading around 360 against the Dollar. An appreciating Dollar, prospects of higher US interest rates, jitters ahead of the 2019 general elections and geopolitical tensions across the world present downside risks to the Naira. With the economic calendar in Nigeria relatively light for the rest of the trading week, the local currency is likely to be influenced by external forces.

 

Risk sentiment wanes on geopolitical concerns

 

Asian stock markets tumbled this morning following a lacklustre session on Wall Street overnight that saw the Dow Jones fall more than 100 points.

 

The incredible rally in Chinese equities yesterday clearly failed to jumpstart risk sentiment as geopolitical tensions weighed heavily on investor confidence. Global equity bulls seem to be entangled in a gruelling battle with ongoing US-China trade disputes, global growth concerns, geopolitical tensions and prospects of higher US interest rates. With the various geopolitical risk factors bubbling violently in the cauldron, all the ingredients for a market-shaking selloff across global stocks seem to be in place. All good things must come to an end and this could be the story for the bullish global equity markets.

 

Dollar gains on safe-haven demand

 

The Dollar remains a popular destination for safe-haven flows amid the mounting geopolitical tensions across the world.

 

Uncertainty over Brexit negotiations, the standoff over Italy’s budget and US-Saudi tensions have sent investors rushing to the Dollar. With the Greenback also supported by optimism over the US economy and prospects of higher US interest rates, the fundamental outlook points to further upside. In regards to the technical picture, the Dollar Index is bullish on the daily charts with prices trading near a two-week high above 96.10. A solid weekly close above 96.00 has the potential to trigger a move towards 96.20 and 96.48.

 

 

Commodity spotlight – Gold

 

Gold bulls hit the ground running this morning as geopolitical concerns promoted risk aversion and accelerated the flight to safety.

 

The yellow metal has scope to shine with intensity this week as the risk-off mood sends investors rushing to any form of safety. However, with the Dollar also benefiting from safe-haven flows there could be fierce competition between the two. Gold seems to be winning the battle of the safe-havens this morning with prices trading around $1,231 as of writing. A solid breakout and daily close above the $1,233.50 resistance level is likely to inject Gold bulls with enough inspiration to challenge $1,245.

 

Currency spotlight – GBPUSD

 

Brexit-related uncertainty remains the primary culprit behind Sterling’s weakness.

 

The clock is ticking with under six months left until the official Brexit deadline and the Irish border issue remains an unsolved puzzle. Investor attraction towards the Pound is likely to diminish as investors evaluate the possibility of a no-deal Brexit scenario. The GBPUSD is under pressure on the daily charts with a breakdown below 1.3000 opening a path towards 1.2930.

 

 

 

 

 


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E-Financial

CBN Issues Advisory on Scammers Flaunting Fake Contracts

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Central Bank of Nigeria (CBN) has issued a fresh advisory warning the public about the persistent activities of fraudsters peddling fictitious contracts, loans, grants and intervention funds under the guise of affiliation with the apex bank.

CBN Issues Advisory on Scammers Flaunting Fake Contracts

This is aimed at protecting Nigerians from financial fraud.

The advisory, signed by  Mrs Hakama Sidi-Ali, acting director, Corporate Communications, noted that despite an earlier advisory issued on November 18, 2024, these criminal elements continue to exploit unsuspecting individuals with fake offers falsely attributed to the CBN.

The apex bank has once again disclaimed any association with such claims, describing them as entirely fraudulent and misleading.

“The Central Bank of Nigeria has not authorised, licensed, or appointed any individual, group, or organisation to act on its behalf in offering contracts or financial benefits to the public,” the statement clarified.

According to the CBN, it does not engage in unsolicited communications, via emails, phone calls, SMS, WhatsApp or any social media platforms, to award contracts or disburse funds. It also stressed that the bank does not request payments or fees in exchange for any financial service or opportunity.

The apex bank urged the public to remain vigilant and to immediately report any suspicious approaches to law enforcement agencies or the nearest CBN branch.

“The Central Bank remains committed to safeguarding the financial interests of the Nigerian public and continues to work closely with security agencies to investigate and curb fraudulent activities,” the statement added.

This advisory, the CBN spokesperson noted, comes as part of the regulator’s wider mandate to ensure transparency, financial integrity and public trust in Nigeria’s financial system.


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E-Financial

SEC Intensifies Fight Against Ponzi Schemes With Market

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Securities and Exchange Commission (SEC) has ramped up its fight against Ponzi schemes in Nigeria, vowing to take decisive action against illegal fund operators while educating the public to prevent further victimisation.

SEC Intensifies Fight Against Ponzi Schemes With Market

At an awareness campaign held in Abuja, the SEC emphasized its commitment to saturating public spaces with information about illegal investment schemes before enforcing the law on perpetrators.

Speaking at the event, Ms Frana Chukwuogor, executive commissioner Legal and Enforcement, Securities and Exchange Commission, warned of the dangers of patronising illegal fund operators known as Ponzi schemes.

She said that the Commission deemed it crucial to sensitize traders, empowering them to make informed decisions when approached with investment requests.

She explained that the campaign is a proactive step to combat the surge in fraudulent investment schemes in Nigeria, aligning with the Commission’s broader strategy to educate the public about Ponzi scheme risks and unregistered investment platforms before enforcing regulatory action.

“Our approach is simple but firm. We are not just a regulator that barks and does not bite. We believe in engaging, enlightening, and empowering the Nigerian people before enforcing the law. We will sensitize before barking and biting,” she stated.

She explained that too many Nigerians, especially those at the grassroots, fall victim to Ponzi schemes due to lack of information or false promises of quick, unrealistic returns, emphasizing that many of these schemes are not registered or regulated by the SEC, making them dangerous and illegal.

“We have seen people lose their life savings, their businesses, and their peace of mind.

That is why we are taking this message to the markets, motor parks, online platforms, anywhere Nigerians are making financial decisions. Prevention through education is our first line of defense,” she added.

Mr Abdusalam Khalid, head of Enforcement Department, Securities and Exchange Commission, warned that while education is the first step, it will not hesitate to prosecute illegal operators who refuse to cease their fraudulent activities

He urged the public to verify all investment opportunities through official channels and report suspicious activities through the SEC helpline.

 

 

 

 


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E-Financial

Bank customers to ditch SMS alerts for email amid rising charges

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Some bank users in Abuja have declared they will opt for electronic mail alerts from their banks to cut costs and reduce charges on their accounts.

Some of them who spoke to the News Agency of Nigeria (NAN) on Sunday said they would deactivate the Short Message Services transaction alert linked to their accounts.

Mrs Dorathy Azinge, a customer of GTCO, described the increase in SMS charges as exploitative.

Azinge said that in spite of various transaction charges debited from her bank account on a daily basis, the bank still increased SMS charges.

”This move of increasing SMS charges is very exploitative even though they cited telecommunication charge.

”What about all the numerous unwarranted debits that I get from my account, and they are using telecommunication increase as yardstick to increase theirs.

”GT will remove different charges from my account until they give me minus balance,” she said.

Another customer, Ms Elizabeth Abu, said she would visit her bank to opt for her transaction alerts to be sent to only her e-mail address.

Abu who complained about the reduction in her capitalised interest on her account, said the numerous debits were becoming frustrating.

” It does not make sense for the bank to charge me for a transaction I did and also charge me for the alert they sent.

” It means that customers are the ones paying heavily for all these services.

” These charges are reflecting on the profits declared by these banks, and we are the ones paying for this,” she said.

Mr Clement Arubu, a customer with First HoldCo Plc, said he received various transaction debit alerts from his bank totalling N1, 050 monthly.

Arubu said the debits were huge, especially when calculated between 10,000 customers of the bank.

” Most customers receive these alerts and neglect them because to them, the money is small but when you debit the same money from about 10,000 customers then, you can be sure that the money is huge,” he said.

Mrs Catherine Itoha,, said a bank had yet to reverse over N20,000 debited from her account through various failed Point of Sale transaction since about 11 months.

Itoha urged some banks and their staff to adopt principles of fair practice in handling their customers.

” Customers are the reason why banks are in existence so, we deserve to be treated fairly.

”GTB debited me in about four different transactions that I did but up till now, they did not reverse any of these monies.

”I visited the bank, filled forms, spoke to their staff personally but still the issue was not resolved since last year.

”If this money did not go to a staff, it means it is part of their profit,” she alleged.

Mrs Esther Arthur, a Fidelity Bank customer alleged that some of the banks were making profits from charges on customers for their transactions.

Arthur described the situation as sad and frustrating, recounting,”I withdrew N10,000 from a First Bank Automated Teller Machine and the machine showed me that I will be charged N100 because it wasn’t my bank.

”When I finished the transaction, to my greatest surprise an alert came into my phone and when I checked it, it was an alert of N630.00 against the N100 on-site ATM charges that the Central Bank of Nigeria instituted.

”This is so sad,” she said.

Mr Augustine Ode, a Zenith Bank customer, appealed to the CBN to check excesses of some banks that were allegedly defrauding customers.

The News Agency of Nigeria (NAN) reports that GTCO had informed its customers of the SMS transaction alert fee increase from N4 to N6 per message.

The bank had said that the adjustment was due to a recent increase in telecom rates.

Credit: NAN


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