The Bank of Israel released a comprehensive assessment today, revealing a substantial economic impact stemming from the ongoing conflict with Hamas.
The central bank’s research department outlined a gross effect of 198 billion shekels ($53 billion), with more than half of this attributed to defense expenditure.
The war’s fiscal implications, initially estimated at 180 billion shekels for 2023-2024, have now climbed to 198 billion shekels.
This hefty economic toll has prompted caution from the central bank, delaying interest rate cuts in favor of stabilizing markets.
The economic growth projections were also revised downward, with the Bank of Israel now expecting GDP to expand by 2% this year and the next.
This adjustment, compared to previous estimates of 2.3% in 2023 and 2.8% in 2024, reflects the widespread disruption caused by the conflict.
Governor Amir Yaron emphasized that the fiscal ramifications of the war would persist over the medium term, urging the government to exercise prudence in crafting a new budget.
While the economic outlook remains uncertain, the central bank’s commitment to stabilizing markets and reducing uncertainty takes precedence, as reiterated in their recent decision to maintain the key interest rate at 4.75%.
The shekel strengthened against the dollar following this announcement.
As Israel grapples with the economic fallout of its worst armed conflict in decades, the central bank’s detailed assessment provides a sobering perspective on the challenges ahead.
The cabinet is set to discuss a revised fiscal plan for 2023, aiming to allocate an additional 30 billion shekels, mainly funded by debt, to address the pressing needs arising from the war.
85.51 Million Nigerian Bank Customers Face Withdrawal Freeze Over NIN, BVN Deadline
As the March 1 deadline looms, an estimated 85.51 million Nigerian bank customers are facing the possibility of frozen accounts due to their failure to link their National Identification Numbers (NINs) and/or Bank Verification Numbers (BVNs) to their accounts.
Recent findings reveal the potential scale of the impending banking crisis.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that Nigeria had approximately 146 million active individual bank customers as of December 2022.
However, by January 26, 2024, only 60.49 million BVNs were recorded on the NIBSS portal, leaving a significant portion unlinked.
Meanwhile, about 104 million NINs had been issued by December 2023, highlighting the disparity between NIN issuance and BVN linkage.
The Central Bank of Nigeria (CBN) had earlier issued directives to banks, mandating them to restrict transactions on accounts lacking linked NINs and BVNs, with effect from March 1, 2024.
Any accounts found non-compliant risk being designated as ‘Post no Debit,’ rendering them unable to process further transactions.
Responding to the impending crisis, the Director-General of the National Identification Management Commission (NIMC), Abisoye Coker-Odusote, emphasized the need for the revalidation of Front-End Partners (FEPs) to ensure the integrity of the identity database.
She underscored the importance of NIN registration and urged collaboration with various stakeholders to expedite the process.
The Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, reiterated the significance of linking NINs to SIM cards to enhance national security.
Telecom subscribers were urged to comply with the NIN-SIM linkage directive to avoid service disruptions.
Meanwhile, financial service providers like Opay have issued reminders of the impending restrictions, urging customers to comply with the linkage requirements.
Amidst concerns, some customers contemplate transferring funds to compliant accounts to avoid potential financial setbacks.
As the deadline approaches, stakeholders are intensifying efforts to mitigate the impact of the impending banking crisis on millions of Nigerians.
Central Bank of Nigeria Injects Over $300 Million to Stabilize Naira-Dollar Exchange Rate
In a bid to mitigate the continuous depreciation of the naira against the dollar, the Central Bank of Nigeria (CBN) has injected over $300 million into the foreign exchange market.
This move comes amidst concerns over the instability of the naira-dollar exchange rate, which has seen rates soar as high as N1850/$ in recent trading sessions.
The Association of Corporate Treasurers of Nigeria revealed the CBN’s intervention in an advisory memo to its members, highlighting the significant injections made over the past two weeks.
The memo underscores the urgency to address the steep decline in the value of the naira, which has posed challenges to businesses and individuals alike.
The CBN’s proactive measures signal a concerted effort to stabilize the forex market and restore confidence in the domestic currency.
The injection of funds aims to provide liquidity and alleviate pressure on the naira, which has experienced rapid depreciation in recent weeks.
Market analysts anticipate that the CBN’s intervention will help mitigate the volatility of the naira-dollar exchange rate, providing relief to businesses and consumers grappling with the economic uncertainties.
The move reflects the CBN’s commitment to maintaining stability in the forex market and fostering economic growth amidst challenging times.
FBN Holdings Surpasses GTCO, Zenith Bank to Become Nigeria’s Most Valuable Bank
FBN Holdings has emerged as Nigeria’s most valuable bank, surpassing Guaranty Trust Holding Company (GTCO) and Zenith Bank in terms of market capitalization.
At the close of trading on Monday, FBN Holdings achieved a market capitalization of N1.22 trillion, solidifying its position at the forefront of the banking sector.
The bank’s market cap is now higher than GTCO’s N1.16 trillion and Zenith Bank’s N1.11 trillion.
The surge in FBN Holdings’ market capitalization represents a 56.68% increase since Femi Otedola assumed the role of chairman on January 31st.
Otedola’s stewardship has been instrumental in driving FBN Holdings’ exponential growth.
Since he was appointed a non-executive director in August 2023 and subsequent ratification by shareholders, his leadership has been characterized by strategic decision-making and investor confidence.
Holdings’ shares have risen from N21.70 to N34 under his chairmanship, representing a significant boost for investors and shareholders.
The market’s positive response to Otedola’s leadership underscores the importance of effective governance and visionary leadership in driving financial performance and investor value.
Minority shareholders have expressed optimism about Otedola’s impact on dividend payments and capital appreciation, highlighting his track record of prioritizing shareholder interests in his previous roles.
FBN Holdings’ ascent to the top spot signals a new era of growth and stability for the bank, setting the stage for continued success in Nigeria’s dynamic financial landscape.
As the banking sector navigates evolving market conditions, FBN Holdings’ position at the pinnacle reflects its resilience and adaptability in driving sustainable value for stakeholders.
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