The Currency that is digital-Crypto

FUGAZ downfall?

First, someone texted me and said “Debby, the value of my shares are going down, what do I do?!

FUGAZ and generally bank stocks have been plunging (today) and you may ask why. On Friday, Central Bank of Nigeria (CBN) ordered all banks benefiting from forbearance on credit exposures or breaches of Single Obligor Limits to suspend dividend payments, defer executive bonuses, and halt new investments in foreign subsidiaries or offshore ventures.

What does this big grammar mean? Banks are not allowed to lend out more than 20% of shareholders fund but they’ve been doing this, so the CBN has given them forbearance, that they resolve the issue and come back. So the banks have not been able to do so hence the suspension, so now,

• They must not pay dividends to shareholders

• They must hold off on giving bonuses to top executives.

• They must not make new investments in businesses outside Nigeria or set up new branches in other countries.

  Now, you know why there’s panic because what do you mean no dividend, so why am I investing?

  Someone came up with this to show the affected banks,

  Risk Scale: 🔴 High → 🟠 Medium-High → 🟡 Medium-Low → 🟢 Low

  1. 🔴 FIRSTHOLDCO

  2. 🔴 FCMB

  3. 🟠 UBA

  4. 🟠 ZENITHBANK

  5. 🟠 FIDELITYBK

  6. 🟢 GTCO

  7. 🟢 ACCESSCORP

  8. 🟢 STANBIC

  I can tell you personally, this is the best time to accumulate these stocks, because they will always bounce back. Don’t panic, don’t sell off. There is always a way around.

  Now, this subject I don’t think I can do justice to it and I believe people who knows it, knows it. As I have said before I don’t know a lot about crypto currency but what I know is, it is digital currency and it works like stocks in my opinion.

  But after a bit of research, I was able to gather this;

  Cryptocurrency is a type of digital or virtual money that uses cryptography (secure coding) to make transactions safe. Unlike traditional currencies like the Naira or Dollar, cryptocurrencies are not controlled by any central authority like a government or bank. Instead, they operate on decentralized networks called blockchains, public ledgers that record all transactions across many computers.

  The most well-known cryptocurrency is Bitcoin, created in 2009. Since then, many others like Ethereum, Solana, and Binance Coin have emerged, each with unique features. People use cryptocurrencies for various reasons: online payments, investment, cross-border transfers, or as a store of value.

  While cryptocurrency offers benefits like fast transactions and financial inclusion, it also comes with risks such as price volatility, scams, and regulatory uncertainty. As a growing part of the financial world, it's important to research and understand how it works before investing or using it.

  Finally, our much anticipated class will be coming up on Sunday, drum rolls please.. My friend Michael will be teaching us all we need to know on Investing on NGX, Michael is an investment guru unlike me who is an enthusiast, Please do not miss it for any reason! Please! I am particularly excited about this class. Please register with this link.