Saturday, March 25, 2023

Nigeria’s CBDC transactions surge 63% amid cash shortages. Will it last?

enaira cbdc digital currency

https://www.ledgerinsights.com/nigeria-enaira-cbdc-transactions-surge/ 

On Tuesday, Bloomberg reported that the value of Nigeria’s digital currency (eNaira) transactions jumped 63% year-on-year as the amount of cash in circulation has been recently cut to a third. Last year, the government began replacing old banknotes to reduce cash hoarding, black market activity and counterfeiting. Yet cash payments still make up almost 90% of Nigeria’s informal economy. As the country’s cash crunch may soon end, will Nigeria be able to sustain the increased adoption of its central bank’s digital currency (CBDC)?

In October 2021, the Central Bank of Nigeria (CBN) became one of the first to launch a large-scale CBDC pilot, the eNaira. Since then, the value of digital currency transactions in Nigeria has risen steadily to almost 22 billion naira ($47.7 million), according to Bloomberg, with more than 13 million e-wallets opened in the past six months alone. By contrast, the amount of cash in circulation has dropped from nearly 3.3 trillion naira ($7.1 billion) in December 2022 to less than 1 trillion naira ($2.1 billion) in February 2023, according to the latest CBN statistics.

CBN Governor Godwin Emefiele argues that this has been part of a sustained effort to bring the informal economy under control and discourage people from circumventing the formal banking system. 

eNaira products and services can help increase participation in the digital economy and promote the growth of the Fintech ecosystem, observers point out, as well as accelerate SME growth, facilitate cross-border trade, and improve interbank market efficiency. However, a November 2022 report by the IMF on the progress of the eNaira indicated a lukewarm reception at best.

Last year, the government decided to enable eNaira CBDC services on special feature phones to boost financial inclusion, which stands at around 70%. In 2021, it also issued a ban on cryptocurrencies to discourage the adoption of alternative private forms of money. 

While these measures have likely contributed to the rise in CBDC adoption, others argue that the reduction of cash, compounded by recent failures in electronic banking transactions, might have also exaggerated the effect. The withdrawal of old 200, 500 and 1,000-naira notes has hurt commercial banks and disrupted conventional channels, sparking protests among Nigerian workers and trade unions.

However, Nigerian newspapers report that the cash crunch might soon be resolved, as the central bank agreed today to release mopped-up naira notes to banks amid an upcoming hike in commodity prices during the season of Ramadan. One of the questions is whether the injection of liquidity will have any impact on the recent acceleration in the adoption of the eNaira.

U.S. energy secretary says it could take years to refill oil reserve

 https://drrichswier.com/wp-content/uploads/ENERGY-SECRETARY-CLOWN-GELLER-REPORT.png

Clown / Energy Secretary Jennifer Granholm

https://www.reuters.com/business/energy/us-energy-secretary-says-it-could-take-years-refill-oil-reserve-2023-03-23/ 

WASHINGTON, March 23 (Reuters) - It could take years for the United States to refill the Strategic Petroleum Reserve, the energy secretary told lawmakers on Thursday, after sales directed by President Joe Biden last year pushed the stockpile to its lowest level since 1983.

"This year, it will be difficult for us to take advantage of this low price," Energy Secretary Jennifer Granholm told U.S. representatives in a congressional hearing. "But we will continue to look for that low price into the future because we intend to be able to save the taxpayer dollars."

Biden administration officials have said they want to refill the reserve, after last year's historic sale of 180 million barrels, when the oil price consistently is around $70 a barrel. Oil from that sale sold at about $94 per barrel.

The price for benchmark West Texas Intermediate crude futures has fallen to around $70 per barrel this week on worries about the economy amid crises at several banks. Granholm said at the hearing the administration wants to buy oil back at under $72 a barrel.

The Department of Energy said last month it was implementing a three-part strategy to refill the reserve in the long term, including repurchases with about $4.5 billion in revenues from previous sales, returns of more than 25 million barrels of oil from previous exchanges, and working with Congress to avoid "unnecessary sales unrelated to supply disruptions." read more

The department succeeded last year in persuading Congress to cancel sales it had mandated of about 140 million barrels that had been set to take place from fiscal year 2024 to fiscal year 2027.

Still, the DOE is moving forward with a sale of 26 million barrels from the SPR that was mandated by Congress in earlier years to help fund the federal budget. The oil will be delivered from April 1 to June 20.

Granholm said that sale and maintenance at two of the reserve's four sites will make it difficult to buy back oil this year.

Bryan Mound in Texas and Bayou Choctaw in Louisiana were both undergoing planned "life extension" work, the department said later.

The SPR currently holds about 372 million barrels, the lowest since 1983, in hollowed-out salt caverns along the Gulf Coast. Steel pumps and other equipment are constantly exposed to moist salty air.

Reporting by Timothy Gardner; Editing by Marguerita Choy and Jonathan Oatis

Goldman Sees Biden’s Clean-Energy Law Costing US $1.2 Trillion


https://news.bloombergtax.com/daily-tax-report-international/goldman-sees-bidens-clean-energy-law-costing-us-1-2-trillion 

US President Joe Biden’s landmark clean-energy law will cost roughly $1.2 trillion — three times more than the official government forecast — and spur trillions more in private-sector investments, according to Goldman Sachs Group Inc.

The Inflation Reduction Act passed last year is intended to encourage investment in renewable-energy sources and efficiency technology. As such, it’s crucial to one of the Biden administration’s fundamental priorities: decarbonizing the economy to forestall the worst effects of climate change.

TikTok CEO Testifies Company Still Storing Some US User Data Overseas, Raising Security Fears

TikTok CEO Shou Zi Chew prepares to testify before the House Energy and Commerce Committee in the Rayburn House Office Building on Capitol Hill on March 23, 2023 in Washington. Chip Somodevilla/Getty Images)

TikTok CEO Shou Zi Chew prepares to testify before the House Energy and Commerce Committee in the Rayburn House Office Building on Capitol Hill on March 23, 2023 in Washington. Chip Somodevilla/Getty Images)

https://www.theepochtimes.com/tiktok-ceo-testifies-company-still-storing-some-us-user-data-overseas-raising-security-fears_5145089.html 

TikTok is still storing Americans’ data on overseas servers, potentially placing it at risk of being accessed and exploited by China’s communist regime.

TikTok CEO Shou Zi Chew testified on the matter during a March 23 hearing of the House Energy and Commerce Committee on the subject of TikTok’s data privacy practices and ties to China.

“Today, there is still some data that we need to delete [from overseas servers],” Chew said.

“I believe we will be able to get it done this year.”

The issue of TikTok’s data practices largely stems from concern about its links to the Chinese Communist Party (CCP) through parent company ByteDance, a Beijing-based tech giant.

ByteDance is subject to CCP laws that require all data controlled by Chinese companies to be surrendered to the regime upon request. ByteDance also maintains a CCP committee as part of its corporate structure, which is also required by Chinese law.

Committee Chair Cathy McMorris Rodgers (R-Wash.) said that TikTok’s ties to the CCP through ByteDance were an unacceptable national security risk, and that TikTok could be used to conduct influence operations or espionage for the regime.

“CCP laws require Chinese companies like ByteDance to spy on their behalf,” Rodgers said. “That means any Chinese company must grant the CCP access and manipulation capabilities as a design feature.”

“TikTok surveils us all and the Chinese Communist Party is able to use this as a tool to manipulate America as a whole. We do not trust TikTok will ever embrace American values.”

TikTok Claims New Project will Secure US Data

For its part, TikTok has proposed to undertake an initiative called “Project Texas,” in which it will store all of its U.S. user data on Oracle-based cloud infrastructure in the United States.

Chew described the effort as “American data stored on American soil by an American company and overseen by American personnel.”

“The company plans to begin the process of deleting non-public historical U.S. user data this month and anticipates that the process will be completed this year,” Chew said.

Chew confirmed that employees of Douyin, the heavily-censored sister app of TikTok available in China, can currently access U.S. user data and would continue to be able to do so until Project Texas is completed.

He also acknowledged that even should Project Texas succeed, “legacy U.S. data” in Singapore would not be deleted until much later.

“To be clear, until that user data transfer happens, user data remains accessible to the Chinese Communist Party,” said Rep. John Joyce (R-Ohio).

Joyce’s comments highlighted the crux of much national security concern about TikTok in Washington, where there is increasing concern that TikTok parent company ByteDance is effectively an extension of the CCP.

Experts say there is mounting evidence to support that claim.

A March 14 report presented to the Australian government, for example, found that ByteDance is a “party-state-controlled entity,” and that its employees have used both ByteDance and TikTok’s data to conduct illicit operations against U.S. citizens.

TikTok executives and employees have acknowledged that TikTok was used as a “blunt instrument” to censor content critical of the regime and, in 2021 TikTok paid $92 million to settle a class action lawsuit alleging that the company illegally harvested Americans’ data and transferred that data to China-based entities.

In 2022, TikTok employees said that key company decisions appeared to be delegated to ByteDance by CCP officials in China before being delivered to TikTok.

To that end, Chew, who previously served as the Chief Financial Officer for ByteDance, acknowledged that he was in regular communication with ByteDance CEO Liang Rubo, to whom he still reports directly.

Denmark Invites Nord Stream Operator to Help Salvage Unidentified Object

The logo of Nord Stream AG is seen at an office building in the town of Vyborg, Leningrad Region, Russia, on Aug. 22, 2022. (Anton Vaganov/Reuters)

The logo of Nord Stream AG is seen at an office building in the town of Vyborg, Leningrad Region, Russia, on Aug. 22, 2022. (Anton Vaganov/Reuters)

https://www.theepochtimes.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object_5147124.html 

COPENHAGEN—Denmark on Thursday invited the Russian-controlled operator of the Nord Stream 2 pipeline to help salvage an unidentified object found close to the only remaining intact gas pipeline under the Baltic Sea.

Three explosions last September on the Nord Stream pipelines built to deliver Russian gas to Germany have become another flashpoint in a standoff between the West and Russia set off by its invasion of Ukraine.

The blasts occurred in the exclusive economic zones of Sweden and Denmark. Both countries say the explosions were deliberate, but have yet to determine who was responsible.

Last week, Danish authorities said a tubular object, protruding around 40 cm (16 inches) from the seabed and 10 cm in diameter, had been found during an inspection of the last remaining intact pipeline by Swiss-based operator Nord Stream 2 AG.

“With a view to further clarifying the nature of the object, Danish authorities have decided to salvage the object with assistance from the Danish Defence,” the country’s Energy Agency said in a statement on Thursday.

“The Danish Energy Agency has in that context invited the owner of the pipeline, Nord Stream 2 AG, to participate in the operation,” it said, adding it was awaiting a response from the operator.

Denmark Invites Nord Stream Operator To Help Salvage Unidentified Object
An unidentified object found close to the only remaining intact gas pipeline under the Baltic Sea in an undated handout image. (Danish Defense Command/Handout via Reuters)

The pipeline operator is controlled by Russian state-owned gas company Gazprom.

Authorities have assessed that “the object does not pose any immediate safety risk,” the agency said.

Russian President Vladimir Putin said last week that a ship rented by Gazprom had found an antenna-like object about 30 km (19 miles) from the explosion sites. It was not clear if he referred to the same object that Danish authorities will attempt to salvage.

The last intact pipeline has remained idle as Europe has cut most energy ties with Russia. The pipeline still contains gas, but the operator said last year it had lowered its pressure as a precaution.

By Jacob Gronholt-Pedersen

US, Canada end loophole that let asylum-seekers cross border

Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Canada at the non-official Roxham Road border crossing north of Champlain, N.Y., on Friday, March 24, 2023. A new US-Canadian migration agreement closes a loophole that has allowed migrants who enter Canada away from official border posts to stay in the country while awaiting an asylum decision. (AP Photo/Hasan Jamali)

Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Canada at the non-official Roxham Road border crossing north of Champlain, N.Y., on Friday, March 24, 2023. A new US-Canadian migration agreement closes a loophole that has allowed migrants who enter Canada away from official border posts to stay in the country while awaiting an asylum decision. (AP Photo/Hasan Jamali) 

https://apnews.com/article/canada-border-migrants-asylum-biden-trudeau-275d932944f831dc5c53d2d582f9ac45 

ST. JOHNSBURY, Vermont (AP) — U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement that has allowed thousands of asylum-seeking immigrants to move between the two countries along a back road linking New York state to the Canadian province of Quebec.

So many migrants since early 2017 have walked into Canada on Roxham Road outside Champlain, New York, that the Royal Canadian Mounted Police staffed a reception center to process them, less than five miles (8 kilometers) from the official border crossing.

Mounties have warned the migrants at the end of the narrow two-lane road bordered by forests and farm fields that they would be arrested if they crossed the border. But once on Canadian soil, they have been allowed to stay and pursue asylum cases that can take years to resolve.

The new policy says that asylum seekers without U.S. or Canadian citizenship who are caught within 14 days of crossing anywhere along the 3,145-mile (5,061-kilometer) border will be sent back. That includes people walking on Roxham Road.

The deal was set to take effect at 12:01 a.m. Saturday — a quick implementation aimed at avoiding a surge of refugee claimants trying to cross, according to Canadian officials who spoke on condition of anonymity to discuss the deal in advance.

Some of the last migrants to make it through before the Biden-Trudeau announcement were about eight people in two families — one from Haiti, the other from Afghanistan — who arrived at the U.S. end of Roxham Road just after dawn on Friday. Both said they took circuitous routes to get there.

Gerson Solay, 28, carried his daughter Bianca up to the border. He said he didn’t have the proper documents to remain in the United States. “That is why Canada is my last destination,” he said before he was taken into custody for processing.

It’s unclear how Roxham Road became a favorite route, but it’s just a taxi ride from where Interstate 87 approaches the Canadian border, and for southbound migrants, it’s a relatively short distance to New York City.

These migrants have taken advantage of a quirk in a 2002 agreement between the U.S. and Canada that says asylum seekers must apply in the first country they arrive in. Migrants who go to an official Canadian crossing are returned to the U.S. and told to apply there. But those who reach Canadian soil somewhere other than a port of entry — like the center near Roxham Road — are allowed to stay and request protection.

The agreement was immediately criticized by some who feel it could endanger the safety of asylum seekers by preventing them from getting needed support from both governments.

“We urge President Biden to strongly reconsider this deal and to work with Congress to restore access to asylum and support policies that recognize the dignity of all those arriving at our borders,” said Danilo Zak, associate director for policy and advocacy for the humanitarian group CWS, also known as Church World Services. The organization advocates for people across the world who have been forced from their homes.

The agreement comes as the U.S. Border Patrol responds to a steep increase in illegal southbound crossings along the wide-open Canadian border. Nearly all happen in northern New York and Vermont along the stretch of border nearest Canada’s two largest cities, Toronto and Montreal.

While the numbers are still tiny compared to the U.S.-Mexico border, it’s happening so frequently now that the Border Patrol increased its staffing in the region and has begun releasing some migrants into Vermont with a future date to appear before immigration authorities.

As part of the deal, Canada also agreed to allow 15,000 migrants from the Western Hemisphere to seek asylum on a humanitarian basis over the course of the year.

Meanwhile, southbound migrants are straining U.S. border officials.

U.S. Border Patrol agents stopped migrants entering illegally from Canada 628 times in February, more than five times the same period a year earlier. Those numbers pale compared to migrants entering from Mexico – where they were stopped more than 220,000 times in December alone — but it is still a massive change in percentage terms.

In the Border Patrol’s Swanton Sector, which stretches across New Hampshire, Vermont and a portion of upstate New York, agents stopped migrants 418 times in February, up more than 10 times from a year earlier. About half entering from Canada have been Mexicans, who can fly visa-free to Canada from Mexico.

About an hour south of the border, the police chief in St. Johnsbury, Vermont, population 6,000, alerted state officials that the Border Patrol had dropped off a vanload of immigrants with just a few minutes notice at the community’s welcome center. The same thing happened several times before within the last few weeks.

In a statement, U.S. Customs and Border Protection said the migrants dropped off in St. Johnsbury had been apprehended along the border after entering the U.S. without authorization, and were given a notice to appear for later immigration proceedings.

They were dropped off in St. Johnsbury because it has a station where migrants can take a bus to a larger city.

“In such circumstances, USBP works in tandem with local communities to ensure the safety of all parties—both community members and migrants—and to ensure stability in the community’s resources,” the statement said.

But local officials said they weren’t given time to prepare. State officials are now working to set up a system to provide migrants services they might require.

On Thursday, a Haitian couple and their children, boys aged 17 and 9 and a 15-year-old girl, were dropped off at the welcome center. The family, who did not want to give their names, wanted to take a bus to Miami.

They said they’d been in Canada for two months, but wouldn’t talk about what prompted them to keep moving.

They missed the Thursday bus that would allow them to connect to a bus to Boston, where they could catch another bus to Miami. A team of local volunteers spent the day getting them something to eat, finding them a place to stay the night and arranging for them to take the bus on Friday.

Police chief Tim Page said St. Johnsbury wants to help these migrants, but not on the fly.

“We need to get something down so we know what we are going to do when these families arrive,” he said. “We don’t have a system set yet, so when we do I am sure this will all go a little smoother.”

___

Associated Press contributors include Rob Gillies in Ottawa, Ontario, and AP photographer Hasan Jamali from Roxham Road.

Californians Can Vote To Derail Los Angeles Mansion Tax in 2024

The Taxpayer Protection and Government Accountability Act received enough signatures Feb. 1 to qualify for the statewide ballot in 2024. The act would dismantle a new tax on commercial and residential in Los Angeles going into effect in April. (Getty)

The Taxpayer Protection and Government Accountability Act received enough signatures Feb. 1 to qualify for the statewide ballot in 2024. The act would dismantle a new tax on commercial and residential in Los Angeles going into effect in April. (Getty) 

https://www.costar.com/article/1174683654/californians-can-vote-to-derail-los-angeles-mansion-tax-in-2024 

L.A.'s so-called mansion tax, a new levy on commercial and residential properties going into effect in April, faces a new challenge.

A ballot initiative known as The Taxpayer Protection and Government Accountability Act, which proponents say would end the mansion tax and other similar measures, officially gathered enough signatures this month to be put up for a statewide vote in California in 2024, according to a statement. Roughly 1.4 million signatures were collected and $16 million was spent to get the act on the ballot, according to Rob Lapsley, president of Sacramento-based California Business Roundtable, which supports the act.

The real estate community shouldn't expect a rebate for any taxes paid via the mansion tax or other similar measures if the Taxpayer Protection Act passes, he said. The Taxpayer Protection Act does not have language concerning any funds L.A.'s mansion tax, and other similar measures, raise between January 2022 and November 2024.

"The focus is on future taxes," Lapsley said.

Outside of the California Business Roundtable, backers of the act include the Howard Jarvis Taxpayers Association and California Business Properties Association, Lapsley said. Big names in real estate also support the Taxpayer Protection Act. Representatives for real estate investment trusts Santa Monica-based Douglas Emmett and Los Angeles-based Kilroy Realty both sit on the board of the California Business Roundtable, Lapsley said.

Proponents of the Taxpayer Protection Act initially wanted to put this act on the ballot in 2022, but instead decided to marshal efforts for a 2024 statewide ballot, Lapsley said.

If passed, the act would:

  • Require that all new taxes passed by the California State Legislature be approved by voters.
  • Prevent non-elected boards and commissions from passing hidden taxes or fees without approval from elected officials or voters.
  • Require two-thirds voter approval for all new local special tax increases.

The latter part of the act, requiring a two-thirds vote, is key to dismantling special tax increases like L.A.'s mansion tax, Lapsley said. If the act passes, L.A.'s mansion tax and similar measures passed between January 2022 and November 2024 would become invalid, he said. However, the act has a mechanism for measures like L.A.'s mansion tax to get reinstated if these measures get a two-third's vote within one year.
L.A.'s mansion tax, formally known as Proposition ULA, an acronym for United to House L.A., won 57% of the vote in November 2022.

Mansion Tax Looms

Going into effect in April, the 4% transfer tax would be applied to all properties — commercial and residential, despite the mansion moniker — sold or transferred in the city of Los Angeles for more than $5 million. A 5.5% transfer tax would be levied on properties sold or transferred for more than $10 million. The current rate is 0.45%.

The tax is projected to raise $600 million to $1.1 billion annually to fund projects promoting housing construction and alleviating L.A.'s worsening homelessness problem.

The Los Angeles real estate community largely loathes the tax, saying bigger real estate deals will be harder to complete and that the tax would blunt demand for L.A. real estate. But ULA proponents say the money is necessary for addressing a stubborn homelessness problem.

Los Angeles Mayor Karen Bass did not respond to a request for comment from CoStar News about her position regarding the Taxpayer Protection Act. However, Bass told the Los Angeles Times on Jan. 12 that she was fretting about the efforts to repeal the mansion tax.

"I’m worried that the real estate community is definitely going to come at this full force," Bass told the Los Angeles Times. "So in my opinion, we have to get everything we can out of it."

Los Angeles isn't expected to be the last city to pass something like the mansion tax, as these measures are becoming popular models to fund efforts to fight homelessness in Golden State cities. Other cities that have passed similar transfer taxes in recent years include San Francisco, Santa Monica and Culver City.

"Get ready, San Diego is next," Lapsley said.