Money Matters: The Week That Was

CBN Launches Portal for Depositing Old Banknotes Amid Naira Scarcity

The Central Bank of Nigeria (CBN) has launched a portal to allow bank customers to deposit their old naira notes, amidst a shortage of new notes. President Muhammadu Buhari has approved the continued use of N200 notes as legal tender, however, the CBN’s directive on phasing out old N500 and N1000 notes remains. To deposit the old notes, customers need to fill in a form on the portal, generate a reference number and take it to the nearest CBN branch. The CBN has stated that a depositor is only allowed one visit to the branch, and beneficiary accounts will only receive value after the successful processing of cash and verification of submitted documents.

If you have old notes that you need to redeem you can begin the process by visiting the following link  https://crs.cbn.gov.ng

Rising Fuel Prices Dampen Valentine’s Day Festivities for Nigerians

The Valentine’s Day celebration in Nigeria was affected by fuel scarcity and increased costs, causing difficulties for small business owners and customers who rely on generators for power supply. Long queues at fuel stations have caused delays and frustration, leading to a loss of productive hours for those who had planned to celebrate the occasion.

The high cost of fuel has also caused significant challenges for low-income earners who may have to spend the day in darkness if there are power supply issues. While the government has promised to resolve the fuel crisis, Nigerians had to find alternative ways to celebrate the day and express their love.

Mobile Banking Transactions in Nigeria Surge by 125% in January, Driven by Cashless Policy

According to recent data from the Nigeria Inter-Bank Settlement Systems (NIBSS), Nigerians registered mobile transactions worth N2.37 trillion in January 2023, representing a staggering 125% increase over the same period the previous year, despite the country’s ongoing cash shortage. The value of NIBSS Instant Payments (NIP) increased by 46% to N38.77 trillion in January 2023, and the volume of NIP transactions increased by 55% year on year to 541.65 million.

The growth could have been higher, but the banking sector’s deficit frustrated many Nigerians in the last two weeks, causing significant delays in mobile transactions. The country’s cash shortage has forced Nigerians to use alternative banking methods such as mobile banking, NIP, and Point of Sale. It is critical for banks and other financial institutions to expand and improve their infrastructure to accommodate more Nigerians who want to use cashless transactions.

Investor Frenzy Propels Bitcoin to Six-Month High in Crypto Market Rampage

Bitcoin and other cryptocurrencies performed well despite short-selling investors, with Bitcoin trading at about $24,700, up more than 11% from the previous day. The rise in Bitcoin’s price eased concerns among investors about the direction of the US economy and the Fed’s upcoming monetary policy measures. Other digital assets also surged, including Ether, which broke beyond $1,700. The MVRV ratio, a key indicator for identifying undervalued assets, suggests that 2023 is still the best time to buy Bitcoin. Stocks related to cryptocurrencies also surged, with Coinbase and Marathon Digital Holdings increasing by 17% and 18%, respectively. MicroStrategy, a significant BTC holder and software provider, also rose by over 9%.