In his speech on the release of the Financial Stability Report, Tiff Macklem, Governor of the Bank of Canada, sought to emphasize the purported strength of Canada’s financial system while cautioning against ongoing risks that could precipitate a “sharp correction” in markets, potentially leading to widespread financial strain. “Some indicators of financial stress have risen,” […]
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India Working on Offline Transferability of Digital Rupee, Says Central Bank Governor
India’s central bank, the Reserve Bank of India (RBI), is in the process of making its central bank digital currency (CBDC) available without relying on internet access. RBI Governor Shaktikanta Das has emphasized the importance of ensuring the digital rupee’s ease of use. RBI Governor Updates Digital Rupee Progress During an event hosted by the […]
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Nigerian Central Bank Governor Denies Using Forex Reserves to Defend Local Currency
The Nigerian central bank governor has refuted claims that the bank is using the country’s foreign exchange reserves to shore up the naira. The governor attributes the decline in reserves to debt repayments and other payments, which are made because they help to maintain Nigeria’s credibility. Maintaining Nigeria’s Credibility Yemi Cardoso, governor of the Central […]
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Fed Governor Bowman Insists High Inflation Could Necessitate Future Rate Hikes
Inflation in the U.S. has remained persistent, experiencing increases in the first two months of 2024, prompting members of the U.S. Federal Reserve to exercise caution against premature rate reductions. Federal Reserve Governor Michelle Bowman has voiced considerations for elevating interest rates, diverging from market anticipations of rate reductions within the year. Bowman’s concerns primarily […]
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Nigerian Central Bank Not in Charge of Crypto Regulation, Says Governor
According to the governor of the Central Bank of Nigeria, the Securities and Exchange Commission is responsible for regulating cryptocurrencies. However, the governor said the central bank will collaborate with law enforcement agencies and regulators overseeing the Nigerian crypto sector. The Central Bank’s Change of Heart In a surprise announcement, Yemi Cardoso, governor of the […]
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Fed Governor Discusses Crypto’s Impact on US Dollar Dominance — Says Banks Should Avoid Bitcoin ETFs as Primary Asset
A Federal Reserve governor has addressed crypto’s impact on the U.S. dollar’s dominance. Additionally, he expressed reservations about the need for a U.S. central bank digital currency (CBDC) and stated his opposition to banks holding bitcoin exchange-traded funds (ETFs) as their primary asset. Fed Governor on Crypto, CBDC, and the U.S. Dollar Federal Reserve Governor […]
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Stablecoins Are the ‘Biggest Misnomers’ and ‘Oxymorons’ Says New Zealand Central Bank Governor
The New Zealand Central Bank governor, Adrian Orr, recently branded stablecoins “the biggest misnomers” and “oxymorons.” Orr also rejected the notion that cryptocurrencies could serve as a replacement or supplement to central bank-issued money. Stablecoins Not a Viable Substitute for Money Despite their rise as an alternative to fiat currency in some regions, stablecoins are […]
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Russia Open to the Use of Crypto in Foreign Trade Says Central Bank Governor
The Russian Central Bank is discussing the possible use of central bank digital currencies as a payment method in foreign trade, according to Elvira Nabiullina, the bank’s governor. Nabiullina stated that while Russia is opposed to the use of crypto payments in domestic transactions, the country is open to the idea of using cryptocurrencies in foreign trade.
Russia Supports Use of Crypto in Foreign Trade
The Bank of Russia is discussing the possible use of central bank digital currencies (CBDC) and cryptocurrencies in cross-border payments with friendly countries, according to Elvira Nabiullina, the bank governor. Nabiullina, who is credited with successfully steering the sanctions-hit Russian economy, added that her country’s CBDC or digital ruble has been inserted with a feature that would enable any integration with other CBDCs.
Regarding the use of cryptocurrencies, Nabiulla expressed her opposition to their use in domestic transactions during an interview with RIA Novosti. However, the Russian Central Bank chief reiterated her country’s openness to their use in foreign trade.
“As for cryptocurrencies, our position is known; we are against their use in payments within the country. At the same time, we support their use in foreign trade, but a bill that provides such an opportunity is still being discussed in the State Duma,” Nabiulla reportedly said.
The Impact of U.S. Sanctions
As previously reported by Bitcoin.com News, Moscow officials have signaled their openness to the idea of “evil crypto” being used in foreign trade. For instance, in April 2023, the country’s deputy finance minister, Alexey Moiseev, revealed Russia was planning to set up a committee to issue permits to entities using crypto in foreign trade transactions.
However, the prospect of Russian entities using crypto to evade sanctions has alarmed some Western leaders and politicians. Many have since called on players in the crypto industry, including crypto exchanges, to deny service to sanctioned entities. In 2022, Hillary Clinton, a losing U.S. presidential hopeful, went as far as calling for the total blockade of all Russian crypto users.
Meanwhile, in the same interview, Nabiullina admitted that the latest U.S. sanctions package and the threat of secondary sanctions have created “certain complications of cross-border settlements with many countries.” She, however, said such complications should impress on Russia and its allies the need “to step up efforts to create alternative payment methods.”
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Nigerian Currency Plunges to New Low Versus the USD, Central Bank Governor Says Naira is ‘Undervalued’
The Nigerian currency reportedly plunged to a new low versus the U.S. dollar on the official market on Jan.25. Central Bank governor Olayemi Cardoso has said the naira is currently “undervalued” and that efforts are underway to rectify this.
Official and Parallel Market Exchange Rates Nearly Converge
The beleaguered Nigerian currency has plunged to a new low against the U.S. dollar on the official market, briefly falling to NGN1,398 per greenback on Jan. 25. According to a Reuters report, the naira’s new official record low saw it nearly converge with the parallel market exchange rate, which stood at NGN1,400:USD1.
This latest depreciation of the naira is a continuation of a descent that seemingly began immediately after Bola Tinubu succeeded Muhammadu Buhari as Nigeria’s president and removed former Central Bank of Nigeria (CBN) Governor Godwin Emefiele. Before that, the Nigerian central bank had kept the naira’s exchange rate versus the dollar fixed at just under NGN500:USD1.
Following the appointment of the new CBN leadership, the naira has steadily depreciated against major currencies on both the official and unofficial markets. Many Nigerian economy experts agree that the ongoing slide of the naira is mainly due to shortages of foreign exchange.
However, the current CBN governor, Olayemi Cardoso, recently told delegates attending the launch of an economic outlook report that the naira is in fact “undervalued” and efforts are now underway to help it realize its true value.
“We believe that the naira is currently undervalued and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate,” Cardoso reportedly said.
According to a report in the Leadership, the Central Bank of Nigeria (CBN) is planning to take several steps to ensure that all foreign exchange inflows are returned to the central bank.
Meanwhile, Cardoso said he is hoping that some of the reforms being undertaken by the CBN will result in a consistent and stable exchange rate. Such an exchange rate will boost investor confidence and make Nigeria an appealing foreign direct investment destination.
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Do you agree with the CBN governor’s comments about the naira’s value? Let us know what you think in the comments section below.
People’s Bank of China Governor Vows to Curb Crypto Speculation
The new governor of China’s central bank has promised to stop speculation associated with cryptocurrency transactions in the country. Pan Gongsheng made the vow in a report detailing measures to maintain the stability of the Chinese financial market and prevent risks.
PBOC Prepares to Crack Down on Cryptocurrency Speculation and Money Laundering
The People’s Bank of China (PBOC) must adhere to the principle of seeking progress while maintaining stability, its Governor, Pan Gongsheng, said in his “Report on the Financial Work of the State Council” delivered at a Saturday meeting of the Standing Committee of the 14th National People’s Congress.
The document presents the monetary authority’s response to changes in the economic situation and reveals its intentions to boost confidence in the country’s financial system, prevent risks, expand domestic demand, and promote the continued economic recovery.
The report, quoted by Chinese media, marks several key areas the PBOC plans to focus on. These include implementing prudent monetary policy, strengthening and improve financial supervision, deepening financial reform, and maintaining the stable operation of financial markets.
As part of efforts to prevent and resolve hidden financial risks, China’s central bank vows to “severely crack down” on illegal financial activities and illegal fundraising as well as “resolutely curb the speculation of domestic virtual currency transactions.”
Furthermore, the regulator will continue to intensify the investigation and handling of money laundering cases, according to the report presented by its recently appointed governor. Pan Gongsheng assumed the post at the helm of PBOC in July of this year.
The top executive also emphasized the bank should guide and stabilize financial market behavior and expectations while taking timely measures in accordance with market conditions. He insisted that the PBOC should work to prevent risk contagion in China’s stock, bond, and foreign exchange markets.
China cracked down on crypto-related activities, most notably mining, of which it was a major hotspot, in 2021. In parallel, the government in Beijing has been promoting the use of the PBOC-issued central bank digital currency (CBDC), the digital yuan, with trials already covering 26 cities.
What measures do you think will the central bank of China take against crypto activities now? Tell us in the comments section below.