Bank’s Monetary Policy Interest Rates Could rise more often this year

THE Reserve Bank could this year be compelled to raise interest rates more frequently than last year to prevent the rand from pushing up prices, economists said.
This trend could start at the Bank’s first meeting of the year at the end of this month.
At 5.08pm on Monday, the rand was at R16.6565/$ after hitting a record low of R16.7695/$ earlier in the day.

 
A weak rand stokes inflation and could encourage the Bank’s monetary policy committee to raise interest rates.
Rate hikes attract investors to buy South African assets including the rand, firming the currency. A firmer rand, in turn, eases the pressure on price increases slightly.
The recent "massive underperformance" of the rand made a 50 basis points rate increase later this month a "distinct" possibility despite weak economic growth, said ETM Analytics economist Manisha Morar.

President Zuma’s policy left economic in likelihood funds.

If investors  needed reminding about the quandary facing South Africa’s central bank, they just got it from two credit-rating companies.
While statements on Friday from Standard & Poor’s (S&P) and Fitch Ratings left the country’s debt short of a downgrade to junk, both companies gave the same diagnosis for SA’s economic malaise: government policies that are denting business confidence and the likelihood of state funding or guarantees that will further strain the budget of President Jacob Zuma’s administration.

The assessments get to the heart of the dilemma facing Reserve Bank governor Lesetja Kganyago, who is struggling to keep the weakening rand from fuelling inflation at a time when interest rates at their highest level in five years have left gross domestic product growing at its slowest pace since 2009. Throw in the looming prospect of the US Federal Reserve’s first rate increase in almost a decade — an event likely to accelerate the capital exodus from Africa’s second-biggest economy — and the task becomes greater still.

Buhari endorsed restricing foreign- exchange trading

President Muhammadu Buhari says he is opposed to a further weakening of the naira, and has endorsed the Central Bank’s policy of restricting foreign-exchange trading.

“I don’t think it is healthy for us to get the naira devalued,” Buhari said in an interview in Paris with France 24, broadcast yesterday.

The Central Bank is providing ample foreign exchange to “essential services, industries,” he said.

 

The unqualified presidential backing of the policy of Central Bank Governor Godwin Emefiele, is bound to dampen the clamour by analysts and portfolio managers for a further weakening of the currency of Africa’s largest oil producer.

After a halving of oil prices in the past year, the Central Bank of Nigeria reacted to the naira’s drop to a record low in February by extending trading curbs and introducing bans on purchases of dollars by certain importers.

NIMC, records 7M as National ID card to Confirm Nigeria’s Population

NIMC records 7m registration
The National Identity Card will confirm Nigeria’s population and those entitled to vote, President Muhammadu Buhari said as he was registered on Monday.
This is even as Chris Onyemenam, director-general, National Identity Management Commission (NIMC), said that so far about 7 million Nigerians had been captured in NIMC’s database.

 
Shortly after he was registered at the Presidential Villa, President Buhari said the National ID card “will complement the exercise of the permanent voters card,” saying that for those who want their votes to count from whichever party or constituency, they should ensure that they and their families were properly captured.

Cashless Policy: Banks Implement Charges on Cash Withdrawals Nationwide

Deposit money banks in the country have commenced implementation of charges on cash withdrawal in excess of the stated limit.

CASHLESS POLICY

This is following the end of the suspension of charges on withdrawals for both individual and corporate account holders in 30 states of the federation till July 1, 2015.

The Central Bank of Nigeria had in June 2014 explained that the waiver was to give banks time to deploy adequate infrastructure needed to support the and sensitisation of bank customers on the importance of the policy.

Obama Makes Way for Families of Hostages to Negotiate with Terrorists, Pay Ransoms

President Obama announced Wednesday a new directive designed to allow the families of hostages held by terrorists to negotiate and pay ransom for the release of their loved ones.

 

The announcement, made after a six-month review of hostage policies, marks a reversal from the U.S. government’s longstanding policy barring any negotiation with terrorists and making those who hold such discussions with terrorists subject to criminal prosecution.

Fidelity Bank plc: 2014 Impressive Results Validate Growth Strategy

Fidelity Bank plc is a Nigerian-based company. The bank’s offering includes personal, private and corporate banking services, as well as Diaspora banking. It also supports small, medium and large-scale agricultural establishments within the Fidelity Agri-Nigeria Project.

From January 1, 2006, the Bank merged its assets, liabilities and undertakings, including real and intellectual property rights with that of FSB International Bank Plc and Manny Bank Plc. The Bank was quoted on the Nigerian Stock Exchange in 2005.

Strong interest earnings driven by loan growth

Drama, as Abba stalls handover for hours, 3 DIGs protest Arase’s appointment

ABUJA — There was confusion and drama at the Force Headquarters in Abuja, yesterday, as the sacked Inspector-General of Police, Mr Suleiman Abba, stalled the formal handover to his successor, Mr Solomon Arase, until he was compelled to do so by the Presidency.

This came as some former Inspectors-General of Police expressed reservations over the manner Abba was removed while other leaders were divided over the sack.

 

The handover ceremony which was earlier slated for 8 a.m. with invitations sent to journalists for coverage from the office of the Force Public Relations Officer, did not take place until almost 4pm following the absence of the ex-Police boss at the headquarters.