TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* The Central Bank of Nigeria weakened the local naira currency to a record low against the U.S. dollar on Dec. 31, 2020, according to Bloomberg News. The naira closed at 410.25 per dollar at the I&E window and 400.25 per dollar on the spot market at around mid-afternoon.
* Libya's central bank rolled out its new unified exchange rate yesterday, Reuters reported. The regulator's board agreed on a new rate of 4.8 dinars per U.S. dollar in December, its first joint meeting in five years after its split when the country was divided between western and eastern factions.
➤ Fintech M&A 2020 Deal Tracker: Nasdaq's software pivot; Stripe enters Nigeria
Nasdaq bolstered its position in the software-as-a-service market with its acquisition of anti-money-laundering specialist Verafin, while Stripe and Western Union struck payments deals in Nigeria and Saudi Arabia, respectively.
➤ From financials to fish, what the Brexit trade deal means
The agreement removes the threats of defaulting to World Trade Organization rules and high tariffs for goods transported between the U.K. and the EU but does little for the trade of services, most notably in the crucial financial sector.
➤ Cyberrisk models advancing quickly, but still years away from 'credible output'
Specialists say cyber models still lag their natural catastrophe counterparts, but are nonetheless useful if used carefully and are expected to catch up in a few years.
BANKING
* U.K.-based Barclays PLC filed a $130 million lawsuit against businessman Bavaguthu Raghuram Shetty, founder of United Arab Emirates-based payments firm Finablr PLC, in October 2020 over a personal unlimited guarantee on debts allegedly given by businessman, The Times reported. The British bank said Shetty gave an unlimited guarantee on the debts, which he denies, and that it had made a formal demand for the money in April 2020.
* U.K.-based money transfer service provider TransferWise Ltd. will cease from offering multi-currency accounts owned by clients with addresses in the UAE due to a regulatory update, a company representative told The National. As part of the changes, UAE-based customers will no longer be able to use their online bank accounts to make cross-border money transfers.
* Kenyan bank Equity Group Holdings PLC obtained approval from the Democratic Republic of Congo's central bank to merge unit Equity Bank Congo Sarl with Banque Commerciale Du Congo SA, which it acquired last year, Business Daily Africa reported. The combined entity will operate as Equity Banque Commercial du Congo.
* Nigeria's First City Monument Bank Ltd. will look into accusations of unethical conduct against Managing Director Adam Nuru following allegations that the executive had an affair with a married former employee, Business Post reported.
* The shareholders of Saudi Arabia-based Bank AlJazira approved a resolution to distribute interim dividends in 2021 on a semiannual or quarterly basis, as well as a proposal to transfer 68 million riyals of general reserves to retained earnings.
* Jeremy Ngunze and Livingstone Murage resigned as group director of corporate development and regional business and group director of governance of Kenyan lender NCBA Group PLC, respectively, effective Dec. 31, 2020.
* Mohamud Ahmed Mohamud, head of the Kenya Deposit Insurance Corp., said banks with higher risk exposures are set to be billed higher premiums beginning in July when the coronavirus-prompted one-year suspension on increased premiums lapses, Business Daily Africa wrote.
* Standard Chartered Bank Ghana Ltd. said its name change to Standard Chartered Bank PLC took effect Nov. 25, 2020, in compliance with legislation.
FINANCIAL SERVICES
* Isracard Ltd. will cut 200 jobs by the end of 2021 as part of a new strategic plan by the Israeli payments company's board, Globes reported. The cuts will affect 100 of the company's own staff while the other 100 are from outsourced companies or on individual contracts.
* Kuwait-based Gulf Insurance Group KSCP is extending the subscription deadline for its capita increase from 2020-end to Jan. 14, subject to regulatory approval.
* Kuwaiti asset manager Noor Financial Investment Co. KPSC received regulatory approval to merge with Noor Telecommunication.
* Allied Cooperative Insurance Group (ACIG) sought approval from the Capital Markets Authority of Saudi Arabia to increase its capital through a 150 million riyal rights issue.
* Mujtaba Abdul Husain Shaban resigned as general manager of operations and corporate affairs of Oman-based Vision Insurance SAOG, effective Dec. 29, 2020.
POLICY AND REGULATION
* Bahrain's central bank asked financial institutions in the country to further extended by six months loan payment holidays in a bid to lessen the impact of the coronavirus crisis on businesses and individuals, Reuters reported. The central bank recommended that companies keep the installment amount unchanged and to not increase interest rates on pandemic loans.
* The Zimbabwean central bank maintained its bank policy and medium-term lending rates at 35% and 25%, respectively, a move that Governor John Mangudya attributed largely to the introduction of the foreign-currency auction system, which prompted local goods production, The Herald reported.
INDUSTRY NEWS
* The long-awaited Africa-wide free-trade pact took effect Jan. 1 following years of negotiations on lowering cross-border tariffs. The accord could allow the free-trade zone to become the world's largest by area when it becomes fully operational by 2030, Bloomberg News noted.
* Obaid Saif Hamad al-Zaabi, head of the UAE Securities and Commodities Authority, said the regulator received a number of IPO requests that will take place in first half, Asharq Business wrote.
* Oman is looking at a potential borrowing spree to cover roughly 73%, or 1.6 billion rials, of its 2021 budget deficit of about 2.2 billion rials, Arabian Business reported.
MARKETS
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Deza Mones, Abdelghani Henni, Sophie Davies and Mariana Aldano contributed to this report.
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