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CBN Announces 130% Surge in Remittance Inflows, Reaching a Record $553m in July 2024.

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The Central Bank of Nigeria (CBN) has announced a remarkable 130% surge in remittance inflows, reaching a record $553 million in July 2024. This figure, the highest monthly total ever recorded, signifies a substantial increase from the same period in 2023 and is believed to underscore the effectiveness of the CBN’s strategic policies aimed at enhancing liquidity in Nigeria’s foreign exchange market.

According to a statement by Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, this unprecedented growth in remittance inflows is a direct result of the central bank’s deliberate policy measures. These initiatives have been designed to bolster the flow of foreign exchange into Nigeria, stabilizing the market and supporting the country’s economic objectives.

Key among these measures is the licensing of new International Money Transfer Operators (IMTOs), which has expanded the network of channels through which remittances can be sent to Nigeria. Additionally, the CBN’s implementation of a “willing buyer-willing seller” model has provided greater flexibility in the foreign exchange market, allowing remittances to be exchanged more efficiently and at market-driven rates.

Another significant policy move was the facilitation of timely access to naira liquidity for IMTOs, ensuring that these operators can meet the demands of remittance recipients without delays. This, combined with the recent easing of restrictions on exchange rates quoted by IMTOs, has made the Nigerian market more attractive to remitters and IMTOs alike.

Diaspora remittances have long been a critical source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. The CBN’s initiatives to increase remittance inflows are part of a broader strategy to harness this vital resource for economic stability and growth. The central bank has set an ambitious goal of doubling formal remittance receipts within a year, a target that seems increasingly achievable given the current trend.

Background: CBN’s Reforms and Strategic Moves

The impressive growth in remittance inflows can be traced back to several key reforms implemented by the CBN earlier in 2024. In January, the CBN removed the previous cap on exchange rates quoted by IMTOs, allowing for more flexibility and competitiveness in the market. This move was followed by the release of revised guidelines for IMTO operations, which included a significant increase in the application fee for an IMTO license—from N500,000 in 2014 to N10 million in 2024, reflecting a nearly 1,900% increase.

The CBN also set a minimum operating capital requirement of $1 million for foreign IMTOs, with an equivalent requirement for local operators. Initially, IMTOs were barred from purchasing foreign exchange from the domestic market to fulfill their obligations, but this restriction appears to have been lifted, allowing IMTOs to trade on the official market.

To further boost remittance inflows, the CBN established a Collaborative Task Force in partnership with IMTOs, tasked with doubling remittance inflows into Nigeria. This task force reports directly to the CBN Governor, Yemi Cardoso, highlighting the importance of remittances in the CBN’s broader economic strategy.

Moreover, the CBN recently granted 14 new Approval-in-Principle (AIP) licenses to IMTOs, further expanding the network of operators in the market. These steps, combined with ongoing reforms and efforts to streamline processes, have evidently paid off, as demonstrated by the record-breaking remittance inflows in July 2024.

The surge in remittances comes at a time when Nigeria is grappling with various economic challenges, including a volatile foreign exchange market and fluctuating oil revenues. The increase in remittance inflows not only provides much-needed foreign exchange liquidity but also contributes to the country’s broader economic resilience.

The CBN’s report also highlights a slowdown in Nigeria’s year-on-year headline inflation rate, marking the first decrease in 19 months. This development signals the effectiveness of the CBN’s monetary policy tightening measures, which have been aimed at curbing inflation and stabilizing the economy.

The increase in remittance inflows plays a complementary role in these efforts by boosting the supply of foreign currency, which can help ease inflationary pressures linked to exchange rate volatility.

However, these reforms and the uptick in remittance inflow, have failed to boost the naira’s value in the forex market. The naira traded at N605 per dollar in the parallel market on Tuesday.

Looking ahead, the CBN has expressed its commitment to closely monitoring market conditions and adjusting its policies as necessary to maintain the flow of remittances and ensure the stability of the foreign exchange market.

Franklin Templeton files for Crypto ETF with Initial Holdings including Bitcoin and Ethereum

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The investment landscape is continually evolving, and a significant development has been the filing for a crypto ETF by Franklin Templeton, a name synonymous with global asset management. This move marks a pivotal moment in the integration of cryptocurrencies into mainstream financial services.

The proposed ETF, which has been filed under the ticker ‘EZPZ’, is set to initially include Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization. This step by Franklin Templeton is indicative of the growing acceptance and institutional interest in digital assets as a legitimate investment class.

The ETF, if approved, would offer investors a regulated and simplified means of gaining exposure to the digital asset market without the complexities of direct cryptocurrency ownership. This includes the security of custody provided by Coinbase, a leading cryptocurrency exchange, which is set to serve as the custodian for the fund.

For investors unfamiliar with the process of buying, storing, and managing cryptocurrencies, ETFs offer a straightforward alternative. By purchasing shares in a crypto ETF, investors can bypass the complexities associated with direct cryptocurrency ownership.

Cryptocurrency ETFs can provide diversification within an investment portfolio. Since crypto assets have a low correlation with traditional asset classes, they can help in spreading risk. Crypto ETFs are traded on traditional stock exchanges, which means they can be bought and sold through regular brokerage accounts. This makes it easier for a wider range of investors to access the cryptocurrency market.

Investing in a crypto ETF can reduce the security risks associated with holding cryptocurrencies directly, such as theft or loss of private keys. ETFs are held in traditional brokerage accounts, which are typically insured and regulated. Crypto ETFs are subject to regulatory oversight, providing a level of security and legitimacy that may not be present when purchasing cryptocurrencies directly from unregulated exchanges or marketplaces.

ETFs are known for their liquidity, allowing investors to quickly enter and exit positions. A crypto ETF integrates the cryptocurrency market with traditional financial markets, potentially increasing liquidity for digital assets. ETFs generally have lower fees compared to actively managed funds, making them a cost-effective option for investors. Additionally, the transaction costs associated with trading ETFs are often lower than those for buying and storing cryptocurrencies directly.

The move by Franklin Templeton to file for a crypto ETF is not just a leap into a new asset class but also a reflection of the firm’s commitment to innovation and adapting to investor needs. With a history of 75 years in the asset management industry, Franklin Templeton’s venture into the digital asset space is a significant endorsement for the crypto market.

The ‘EZPZ’ ETF aims to reflect the performance of the price of Bitcoin and Ethereum before the payment of the fund’s expenses. It represents a bridge between traditional finance and the burgeoning world of cryptocurrencies, offering a credible oversight by a trusted partner in the financial landscape.

This development is a clear signal that cryptocurrencies are becoming an increasingly important part of the financial ecosystem. It also highlights the potential for other traditional financial institutions to explore similar offerings, thereby expanding the accessibility and credibility of cryptocurrency investments.

The anticipation around the approval of this ETF is high, and it could potentially open the doors for more investors to enter the crypto market. It is a step forward in the recognition of cryptocurrencies as a valuable component of a diversified investment portfolio.

How to Bypass Phone Number Verification without Compromising Privacy

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Implementing phone number verification in today’s information space has become a popular procedure in various services. An easy example is the creation of social network accounts, where sites now require users to receive SMS verification. However, sharing personal phone numbers comes with the issue of privacy.

This blog will focus on avoiding phone number verification without losing privacy while being as secure as possible.

The Importance of Privacy in the Digital Age

Since everyone’s information is accessible to all individuals in this highly technologically evolved society, privacy is the primary concern. It is crucial to safeguard data for privacy and one’s psyche, as failure poses serious cons. Therefore, it’s critical to implement safeguards to maintain user privacy when using social networking sites.

Understanding Phone Number Verification

Phone number verification is another form of ID check that online platforms demand from their users to ensure that a user is genuine. This often includes entering the users’ phone number and receiving an SMS from the platform, with a code that must be entered to finish the verification.

Standard methods of phone number verification include:

  • SMS Verification: The user receives an SMS on their phone with a code they must submit on the platform.
  • Voice Call Confirmation: This is comparable to an SMS, although, in this instance, the user receives the code via an automated phone message.
  • App-Based Verification: Codes are received in applications such as Google Authenticator.

These methods assist in avoiding fake accounts or individuals being fake that they are a particular person. However, they have privacy issues simultaneously, and sharing the phone number entails specific adverse outcomes.

The Need for Bypassing Phone Number Verification

There are various scenarios where bypassing phone number verification may be necessary. For instance, keep your number private or avoid spam and unsolicited calls when signing up for new services. Users often face challenges such as:

  • Privacy Concerns: Sharing a personal phone number can expose users to privacy risks.
  • International Access: Users travelling abroad may not have access to their primary phone number.
  • Temporary Accounts: Sometimes, users must create temporary accounts for short-term purposes without using their primary number.

These difficulties show how important it is to have trustworthy ways to get around phone number verification without sacrificing privacy.

How to Bypass Phone Number Verification

Here, we’ll look at safe ways to get around phone number verification while maintaining your privacy.

Use Temporary Phone Numbers

Verification codes can be obtained with temporary phone numbers (such as those from SMS-MAN) without revealing your number. These numbers can be used for one-time verifications and are usually available online.

Utilize Virtual Phone Numbers

Virtual phone numbers work similarly to temporary numbers but are often available longer. Services like Google Voice and Burner offer virtual numbers to receive SMS verification codes and make calls.

Leverage VoIP Services

Verification can be done using VoIP (Voice over Internet Protocol) phone numbers like TextNow and Skype. These services are most likely to provide more privacy as they are not interlinked to your personal phone number.

Step-by-Step Guide

  1. Select a Service: Choose a reliable service like SMS-MAN, Google Voice, or Burner.
  2. Sign Up: Register for the chosen service and get a temporary or virtual number.
  3. Enter the Number: Use the provided number for SMS verification on the platform.
  4. Receive the Code: Check the service for the received verification code.
  5. Enter the Code: Input the code on the platform to complete verification.

You can avoid phone number verification by following these procedures without jeopardising your privacy.

FAQs

Can I use my personal phone number for verification?

You may use your phone number which is suitable but in this case, you need to think about privacy as such use may lead to, such as spam or other unwanted calls.

Are temporary phone numbers safe to use?

Yes, they are generally safe for verification but do not use any old service-providing site so that your number is not compromised.

Conclusion

Competition has grown so much, and everybody is plugged in. Therefore it is your duty and right to protect yourself and your privacy. Learn how to bypass phone number verification and regain your rights to your data while remaining private. The key is knowing and acting, regardless of direction, with either Google Voice, VoIP, or temporary phone numbers. Remember that you own your privacy, so do not be afraid to use these techniques to keep your data confidential.

U.S. Semiconductor Surge with Texas Instruments

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The recent decision by the U.S. government to allocate $4.6 billion to Texas Instruments under the CHIPS and Science Act is a significant move to support the national semiconductor industry. This law, passed in 2022, aims to restore and strengthen semiconductor manufacturing in the United States, addressing risks posed by global supply chains, shortages, and increasing competition from Asian countries.

The CHIPS and Science Act provides more than $52 billion to boost semiconductor research and manufacturing in the United States. The main objectives of the law are to reduce dependence on foreign supplies, create new jobs, and support innovation in advanced technologies. The U.S. Department of Commerce regularly distributes funds under this law, balancing private sector needs with public interests. Through subsidies and loans, the government seeks to support strategically important companies that can significantly contribute to the industry’s growth.

In total, the CHIPS and Science Act provides $39 billion in subsidies for building new facilities and $75 billion in concessional loans. Most of these funds have already been allocated to over ten recipients, with the remaining funds to be distributed by the end of the year. According to the Commerce Department, the support for Texas Instruments will ensure reliable supplies of domestically manufactured semiconductor components, which are crucial to nearly every aspect of modern life.

Texas Instruments is one of the largest and most well-known companies in the semiconductor world. It is a leader in the production of analog and digital chips used across various sectors, including automotive, consumer electronics, and industrial systems. As the company continues to expand its manufacturing capacity in the U.S., it not only strengthens its own position but also significantly contributes to the broader national economy.

The company intends to invest $18 billion to build three new U.S. plants by 2029. Of the total $4.6 billion allocated to this company, $1.6 billion is in subsidies, and $3 billion comes from concessional loans. This substantial funding is due to several factors:

  1. Major investment project: Texas Instruments is a leading semiconductor manufacturer, actively increasing production capacity in the face of growing demand for chips.
  1. Job creation: The project is expected to create around 3,000 high-skilled jobs, signaling the U.S.’s commitment not just to chip manufacturing but also to developing the local economy and skilled workforce.
  1. Strategic importance: Supporting Texas Instruments is crucial because it produces advanced technologies essential to industries ranging from automotive to electronics.

The financing of Texas Instruments has a multifaceted impact on the U.S. economy. First, creating new jobs improves the quality of life in the regions where new plants will be built. Second, increasing semiconductor production will help meet domestic demand and reduce dependence on imports, which is particularly important given global economic changes and political instability.

Additionally, boosting the country’s chip production will enhance the competitiveness of American technology in the international arena and serve as an example for other companies considering investing in the United States. This development, coupled with the strong Nvidia stock performance, underscores the growing investor confidence in the U.S. semiconductor industry.

Thus, the allocation of $4.6 billion to Texas Instruments under the CHIPS and Science Act reflects the government’s commitment to building a sustainable and independent semiconductor industry, essential for the operation of computers and automated trading software. This initiative not only supports the sector’s growth but also helps the country reassess its economic strategies in the face of increasing global challenges.

Nigerian Inter-Bank Settlement System Forge Alliance With Zone Payment Network to Revolutionize PoS Transactions

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In a pivotal move set to transform Nigeria’s financial landscape, the Nigerian Inter-Bank Settlement System (NIBSS) has announced a strategic partnership with Zone, a payments-regulated blockchain network, to enhance Point of Sales transactions (PoS) in the country.

This collaboration aims to bring unprecedented security, efficiency, and transparency to Nigeria’s rapidly growing PoS system, which also comes in the Central Bank of Nigeria (CBN) requirements for financial services providers to route their PoS transactions through a Payment Terminal Service Aggregator (PTSA).

One of the primary goals of this partnership is to leverage blockchain’s decentralized technology to bolster the security of PoS transactions. By recording transactions on a blockchain, the risk of tampering or fraudulent activities is significantly reduced. This move is expected to address the persistent issues of fraud and chargebacks that have plagued Nigeria’s PoS system, instilling greater confidence in both consumers and merchants.

According to the Fraud and Forgeries Report in Nigerian Banks for the first quarter (Q1) of 2024 by the Financial Institutions Training Centre (FITC), POS fraud cases surged by 31.12% in Q1 2024.

Speaking on the partnership, the managing director and CEO of NIBSS, Mr. Premier Oiwoh said the collaboration with Zone represents a significant milestone in the firm’s mission to drive innovation and enhance the efficiency of the PoS payment system. He further added that this strategic partnership will bring about improved operational efficiency, cost savings, and enhanced financial inclusion, ultimately positioning Nigeria at the forefront of the global payment space.

Also commenting, CEO and Co-founder of Zone, Obi Emetarom said,

“This partnership with NIBSS reflects our unwavering commitment to transform the payment landscape in Nigeria. By harnessing the power of blockchain technology, we are setting a new standard for reliable, frictionless, and universally interoperable payments in the industry.”

It is worth noting that the Nigeria Inter-Bank Settlement System (NIBSS), manages the interconnectivity of all payment terminals across the country, ensuring that devices are brand-agnostic and can accept cards issued by any Dank or licensed card scheme. Additionally, NIBSS standardizes the technical and operational specifications for these terminals and implements a risk management process to handle any potential issues related to contactless payments.

Notably, the recent collaboration with Zone, a blockchain payment-regulated platform, will play a crucial role in improving the efficiency of PoS transactions and protecting users’ sensitive transaction data, adding an extra layer of security, which is pertinent in a world where digital transactions are becoming increasingly prevalent.

Also, blockchain’s transparent nature is set to enhance the trustworthiness of PoS transactions. It is understood that every transaction recorded on the blockchain is visible and verifiable by all parties involved, making it easier to audit and ensuring that records are accurate and consistent. This transparency is expected to build trust among stakeholders, from banks and merchants to consumers.

Moving forward, regulatory compliance will also be a key focus of this partnership, as Blockchain can automatically enforce compliance through smart contracts which will ensure that PoS transactions adhere to Nigerian financial regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. This proactive approach to compliance will reduce the risk of regulatory breaches and associated penalties.

The collaboration between the Nigerian Inter-Bank System and the Nigeria Blockchain Network Zone marks a significant step forward in the evolution of Nigeria’s PoS infrastructure. As the initiative progresses, it is poised to set new standards for digital payments in Nigeria, driving the country’s financial sector toward greater innovation and global competitiveness.