Last Saturday, we announced a new product called the Stears Business library.
Over the next few weeks, we plan to send our subscribers a collection of articles across a range of sectors or themes. We have a deep war chest of content, ranging from fashion & film to oil.
Today, we have packaged our favourite articles on the Central Bank of Nigeria (CBN). We have a reputation for being CBN whisperers, dishing out "no filter" pieces on the apex bank's dealings. These pieces range from a great history lesson of past CBN governors to Emefiele's famous battles against the black market.
After going through this library, you will be comfortable with understanding all things CBN and monetary policy.
First up is a newsroom favourite.
1. Playing god in Nigeria's foreign exchange market
This story would help you understand the foreign exchange (FX) demand and supply complexities in Nigeria. We all know the CBN holds the cards to FX. But if you want to know how the apex bank manages Nigeria's demand for FX and keeps investors interested in bringing their greenback to the greenland, then this is the article for you.
Read the full article here: Playing god in Nigeria's foreign exchange market
2. Can Nigeria print money to solve its problems?
Many TV stations called us to break down this story. If you are following us on Twitter—and you should if you aren't—our followers were elated when we published a thread from the story. But like they say: "there is nothing like the real deal." This article would help anyone understand the concept of "money printing" as an economic tool used by central banks all over the world to stabilise their economies. It is a "must-read"!
Read the full article here: Can Nigeria print money to solve its problems?
3. Dollar slow to enter, dollar quick to go
Reading the topic of our next article already gives the content away. This title was deliberate. As a Nigerian, we often hear, "dollar is scarce". And before you reply with something like "well, it should. Afterall, it is not our currency," you should know that dollar scarcity in Nigeria is synonymous with global oil crashes. There are periods when there is a boom, but how are those managed? This article shows the sources of dollars over time and how the CBN's foreign exchange policies have influenced the outcome.
Read the full article here: Dollar slow to enter, dollar quick to go
4. The tough job of a central bank governor
Who are Nigeria's most recent CBN governors, and what monetary policies are they most known for? With this story, you get an excellent review of not just monetary policies but an understanding of the wheels that turn in the minds of those who make them. As a plus, it has a great history lesson on the last three CBN governors.
Read the full article here: The tough job of a central bank governor
5. Financing your exports: The unending FX battle with the CBN
Who would have thought that exports—an economic activity that Nigeria should be trying to hack—would be something with many regulatory frictions? This is that article that helps you understand exporters' frustration with the CBN. Exporters earn foreign exchange, but the CBN's romance with dollars has led to some policies that are not favourable for them.
Read the full article here: Financing your exports: The unending FX battle with the CBN
6. The CBN's battle for a cashless Nigeria
This article is a great piece on the CBN's confusing cashless policy. The truth is that the things that make sense in this country are limited. But that's why we investigate, write, research and publish—to simplify issues like the cashless policy. The policy places a charge on cash withdrawals and deposits that go above certain limits—all in the name of encouraging going cashless. But digital transactions are also costly, making the policy unattractive to most Nigerians. This article is another good example of conflicting ideas that ought to be straightened out.
Read the full article here: The CBN's battle for a cashless Nigeria.
7. Central Bank Independence
It's not possible to talk about central banks without discussing independence. The theory is quite clear on the subject. If a central bank wants to be optimal at reducing inflation, it needs to be independent of the rest of the government. Unfortunately, several developing countries miss this point. In this classic article from 2015, we discuss the importance of central bank independence.
Read the full article here: Central Bank Independence
8. Analysing the CBN's cryptocurrency exchange restriction
As you might recall, the CBN's instruction restricting banks from honouring fund withdrawals to make crypto transactions caused quite a stir. It even marred the 2021 valentine day celebration for some. The CBN's policy was impromptu and inconsistent with the discussions that crypto stakeholders had with regulators. Our readers have attested to the great insights in this piece, which helped them understand the reason behind CBN's sudden u-turn.
Read the full article here: Analysing the CBN's cryptocurrency exchange restriction
9. Emefiele vs the parallel market
If like us, you are a sucker for humour loaded with witty finance analysis, you don't want to miss reading this story. From the headline alone, you can tell that it is loaded with drama—important drama, we must add. It is useful as a great bedside read. And if you prefer, it is so perfect it can be that boost of knowledge-based confidence that we all need before an early morning business briefing.
Read the full article here: Emefiele vs the parallel market
10. How the CBN knocked Rubies digital bank offline
Our final piece for this list is a remarkable case study on how policies impact businesses and, in turn, our financial and economic lives. Rubies Bank's customers (who comprise both businesses and individuals) got no access to their funds and could not provide services for their customers because the CBN froze their activities. We broke the story and, as usual, did an insightful analysis of the company's operations which you might find useful for your research or analysis.
Read the full article here: How the CBN knocked Rubies digital bank offline
You might have enjoyed one or more of these articles and would like to drop a comment. We encourage feedback, as it's also helped in curating this list. So please shoot us an email with your thoughts, recommendations and constructive criticisms at [email protected]. We would be delighted to hear from you.