Experts Urge CBN to Leverage Technology to Strengthen Naira

1 Some financial experts have advised the Central Bank of Nigeria (CBN) to leverage technologies and innovations from BRICS countries to bolster the naira.

2 The experts gave their advice at the first edition of the annual Banking and Technology Forum, organized by the Center for Financial Studies of the Chartered Institute of Bankers of Nigeria (CIBN) on Thursday in Lagos.

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3 News Agency of Nigeria reports that the hybrid meeting was themed “Leveraging Technology to Gain Competitive Advantage”.

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4 Mr. Adjiedj Bakas, an economist, specifically urged the CBN to base the naira on gold to enable it to compete with the US dollar in value.

5 According to him, if the CBN wants the naira to be strong and stable enough, it should finance it on gold, oil and gas and other commodities.

6 “The BRICS countries – Brazil, Russia, India, China and South Africa – these five powerful nations, strong and big economies, come with a lot of initiatives, which could be beneficial for Nigeria.

seven “They’re coming up with a new global reserve currency based on gold, oil and gas, and other commodities, and that’s going to compete with the US dollar,” Bakas said.

8 He said the BRICS had also developed an alternative to the SWIFT (Society for Worldwide Interbank Financial Telecommunications) payment system, which is also used in the Netherlands and Nigeria.

9 “So they are offering an alternative to SWIFT, a competent alternative to the dollar.

ten “And this new global reserve currency is based on gold and commodities.

11 “So my advice would be for the Nigerian Central Bank to base the naira on gold; you have to buy a lot of gold, and we have tons of gold.

12 “But you also have to rely on all the oil and gas reserves in Nigeria, and then the naira will be worth a lot more,” Bakas said.

13 The expert also urged banks to use both SWIFT and the new payment platform introduced by BRICS, based on Alipay and WeChat.
“It is related to facial recognition, artificial intelligence and security; you can follow money and traces everywhere,” he said.

14 He urged banks to provide a good future for young people by adapting to these technological trends that have boosted global gross domestic product.

15 “Come in, dive into this technological revolution because technology is going to change blue collar workers and devices are going to take over a lot of our financial administration.

16 “So as a bank you have to be fast, provide fast services, especially to millennials; and also leverage digital naira as they all love Central Bank digital currency,” he said.

17 The Director of CBN’s Information Technology Department, Ms. Rakiya Mohammed, said the apex bank has been proactive in creating conducive environments for the development of the banking sector.

18 She said the monetary authority had developed guidelines, frameworks and innovative products to stimulate creativity in the banking sector without stifling healthy competition among players in the sector.

19 “If we’ve learned anything in CBN, it’s the fact that technology won’t wait for regulation, so we decided to be as nimble as possible.

20 “We have tried to be proactive in creating an enabling environment through guidelines, frameworks and innovative products to stimulate creativity in the banking sector without stifling healthy competition between players in the sector.

21 “In 2021, when the CBN announced plans to roll out the first central bank digital currency in Africa and one of the first in the world, some people were skeptical about our ability to accomplish what other central banks were still hesitant to do. TO DO.

22 “But we were convinced it was the way to go because the technology trends were clear to us.

23 Either you embrace disruption or you become obsolete.

24 “Despite opposition, eNaira was successfully launched and its adoption accelerated both locally and internationally with nearly one million wallet downloads among individuals and merchants,” she said. declared.

25 She recounted how the monetary authority recently came across a post on Twitter where someone said that the large population of unbanked Nigerian international students in the northern Cyprus town of Lefkosa were using eNaira to facilitate payments for goods and services.

26 Mohammed, who was represented by Mr Afolabi Adeleye, said: “These digital natives are not waiting.

27 “At CBN, we are starting to have conversations about monetary policy in the metaverse, open banking, digital identities, among others.

28 “Building on the gains from eNaira adoption, we recently concluded our first hackathon focused on expanding its use to drive financial inclusion and cross-border remittances.

29 “Embracing technology as a business enabler to generate competitive advantage is no longer optional.

30 It is a question of survival of the company in the future.

31
CIBN’s Dr Ken Opara, represented by the Board’s First Vice-Chair, Professor Pius Olarenwaju, said: “This event provides us with another opportunity to deliver value to our stakeholders as they attempt to navigate the world of fintech and digital finance.

32 “Indeed, this event could not have come at a better time as the way we do banking has changed dramatically since technology entered the fray.

33 “Banks are now focusing on high levels of personalization and tailor-made solutions to meet customer needs, enabled by accelerating digital transformation.

NewsSourceCredit: NAN

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