EU Investment Nigeria Limited

11/09/2026

SHOULD US BANKS HAVE A COMMON STABLECOIN?

The debate between major US banks launching in-house proprietary stablecoins versus forming a unified bank consortium stablecoin for cross-border payments represents a pivotal strategic divide.

In practice, the industry is moving aggressively toward both strategies simultaneously, as each answers a different corporate requirement.

For example, U.S. Bank recently completed live pilots of its proprietary USBDC stablecoin, while a massive consortium of 21 major global banks (including Bank of America, Citi, Wells Fargo, and Goldman Sachs) announced a joint venture to launch a single unified USD stablecoin solution.

Source: AI Generated

11/09/2026

MACROECONOMIC IRONY: CHINESE YUAN GLOBAL MONEY SUPPLY IMPACT

It is absolutely an irony, and it represents one of the most fascinating paradoxes in modern global macroeconomics.

By the numbers, China accounts for roughly 37.2% of the entire global M2 money supply.

Its domestic M2 sits at a staggering ~$51.8 trillion USD equivalent, which is well over twice the size of the United States’ M2 (~$23 trillion) and larger than the U.S. and the European Union combined.

Because of this sheer volume, when the People's Bank of China (PBOC) expands or contracts credit, it mechanically drives the majority of raw global liquidity movements.



Source: AI Generated

04/09/2026

Goldman Sachs and a consortium of 21 major global financial institutions plan to launch a regulated U.S. dollar-backed stablecoin in the first half of 2027.

Overview of the Initiative
Launch Target: A new joint-venture company will be established in the second half of 2026, targeting a live U.S. dollar stablecoin rollout by early 2027.

The Consortium:
The project expanded from 10 founding banks in October 2025 to 21 major institutions, including Goldman Sachs, BofA and others plan to issue dollar stablecoin together in 2027. Others are Bank of America, Citi, Deutsche Bank, UBS, Wells Fargo, and Fidelity.

Source: AI Generated

04/09/2026

CBN IS CUTTING TREASURY BILLS RATES AMID AN APPRECIATING CURRENCY

It makes economic sense for the Central Bank of Nigeria (CBN) to lower Treasury bill (T-bill) stop rates under these conditions.

In macroeconomic management, a strengthening currency combined with moderating inflation creates a window for a central bank to transition away from aggressive tightening toward policy normalization.

Summary of Policy Stance:

The CBN is executing a delicate balancing act. While the benchmark Monetary Policy Rate (MPR) has been held strictly restrictive at 26.50% to lock in disinflation, the declining stop rates on primary T-bill auctions reflect a tactical, market-driven relaxation to save borrowing costs and stimulate economic expansion without triggering a fresh round of currency depreciation.

Source: AI Generated

02/09/2026

02/09/2026

The US dollar trades at an official Nigerian Foreign Exchange Market (NFEM) rate of roughly ₦1,346.49 per dollar, while the parallel market hovers around ₦1,400 to ₦1,405 per dollar.

Most economic projections place the year-end rate between ₦1,340 and ₦1,450 per dollar, driven by cautious optimism over central bank interventions and oil production stability.

The CBN must retain such band because of the risk of massive flight by FPIs with FX gains if the exchange rates go below N1,200.

Source: AI Generated

28/08/2026

DOES THE CURRENT NAIRA EXCHANGE RATE TODAY ENCOURAGE EXIT OF FPIs?

The current exchange rate environment is highly unlikely to trigger a mass exit of Foreign Portfolio Investors (FPIs); in fact, the macro conditions are actively tempting them to stay or increase exposure.

While a rapidly appreciating currency can sometimes trigger a profit-taking exit (as investors convert their naira gains into more dollars), several stabilizing mechanisms are currently preventing "hot money" capital flight.

Why FPIs Are Staying Put (and Moving In)

1. Global Upgrade and Index TrackingYesterday’s major announcement by FTSE Russell to upgrade Nigeria back to "Frontier Market Status" (effective September 21, 2026) acts as a powerful anchor. FPIs—especially large institutional global fund managers bound by index benchmarks—are legally required to maintain or build exposure to countries holding this status. This structural shift heavily mitigates the risk of sudden exits.

2. Resolved Capital Repatriation BacklogsThe primary reason FPIs fled Nigeria in 2023 was the inability to get their money out due to acute dollar scarcity. Today, FTSE Russell explicitly confirmed that FX queues have cleared and international investors no longer face significant delays in repatriating capital. Paradoxically, knowing they can exit easily makes investors much more comfortable keeping their money in the economy.

3. Robust FX Buffers
Nigeria’s foreign external reserves have surged to $53.11 billion, reaching a 17-year high. This immense buffer gives the Central Bank of Nigeria (CBN) massive am******on to defend the Naira and absorb any localized FPI exit pressure without triggering a currency crash.

4. High Yields Outweigh Currency Risks
The CBN's aggressive monetary tightening has kept local interest rates highly elevated. These massive yields on short-term government debt and OMO bills continue to compensate foreign investors handsomely for the underlying emerging-market risks.

Source: AI Generated