Nigerian Central Bank Dismisses Rumors About Demonetized Naira Banknotes

All Banknotes Issued by the Central Bank of Nigeria (CBN) Remain Legal Tender

The Nigerian Central Bank has recently clarified that the previously demonetized naira banknotes are still considered legal tender. In response to ongoing rumors suggesting otherwise, the bank emphasized that all banknotes issued by the CBN should not be rejected by anyone.

CBN Warns Against 'Panic Withdrawals'

Furthermore, the CBN has warned against panic withdrawals and urged the Nigerian public to remain calm. It also encouraged the use of alternative modes of payment to alleviate any cash shortage concerns.

Demonetization Process and its Objectives

The demonetization process, spearheaded by former governor Godwin Emefiele, was initially aimed at countering the activities of parallel market foreign exchange dealers and currency hoarders. However, some local media reports claimed that the exercise was politically motivated to disrupt the campaign of then-presidential aspirant Bola Tinubu.

Continued Issuance of Different Denominations

The CBN has instructed its branches across the country to continue issuing different denominations of both the old and redesigned naira banknotes. This decision reinforces the bank's commitment to ensuring a smooth transition during the demonetization process.

Legal Tender Status of Demonetized Banknotes

Despite the demonetization, the CBN has made it clear that all denominations of banknotes issued by the Central Bank of Nigeria remain legal tender. Refusing to accept naira banknotes as a means of payment is a violation of Section 20(5) of the CBN Act, 2007.

Conclusion

In conclusion, the Nigerian Central Bank has dismissed rumors regarding the legal tender status of demonetized naira banknotes. It has reiterated that all banknotes issued by the CBN should be accepted and not rejected. The CBN has also cautioned against panic withdrawals and encouraged the use of alternative payment methods.

Frequently Asked Questions

Which is more powerful: sterling silver or 14k gold?

While gold and silver are both strong metals but sterling silver is less expensive than silver because it contains 92% pure Silver rather than 24%.

Sterling silver is sometimes called fine silver. This is because it is made with a mix of silver and different metals like copper or zinc.

It is generally believed that gold is very strong. It is very difficult to separate it from its metal counterpart. If you were to drop an object on top of a piece of gold, it would shatter into thousands of pieces instead of breaking into two halves.

On the other hand, silver is not nearly as strong as gold. If you dropped an object onto a sheet silver, it would bend and fold with no damage.

Silver is often used to make jewelry and coins. Silver's value can fluctuate depending on the supply and demand.

What are the fees for an IRA that holds gold?

The average annual fee to open an individual retirement account (IRA), is $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type comes with its own set rules and requirements. If you don't have tax-deferred investments, then earnings may need to be taxed. It is important to consider how long you plan on keeping the money. If you plan to keep your money longer, you can save more money by opening a Traditional IRA instead of a Roth IRA.

A traditional IRA allows you to contribute up to $5,500 per year ($6,500 if you're 50 or older). The Roth IRA allows unlimited contributions each year. The difference between them? With a traditional IRA, the money can be withdrawn at your retirement without tax. A Roth IRA will entail taxes for any withdrawals.

What precious metals do you have that you can invest in for your retirement?

Knowing what you have saved so far and where you plan to save money in the future is the first step towards retirement planning. Start by listing everything you have. This should include all stocks, bonds, mutual fund, certificates of deposits (CDs), insurance policies, life insurance policies and annuities. Then add up all of these items to determine how much you have available for investment.

If you haven't already done so, you may want to consider opening a Roth IRA account if you're younger than 59 1/2 years old. A traditional IRA allows you to deduct contributions from your taxable income, while a Roth IRA doesn't. However, you won't be able to take tax deductions for future earnings.

You will need another investment account if you decide that you require more money. Begin with a regular brokerage.

Which type of IRA works best?

When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.

If you're saving for retirement and don't have much money invested, the Roth option could make sense. It is also an option if you are still working after age 59 1/2. You can expect to pay income taxes for any accounts that are withdrawn.

Traditional IRAs are more suitable if you intend to retire young. However, you will most likely owe taxes on any earnings from those funds. The Roth IRA could be more beneficial if you intend to continue working after age 65. This allows you the freedom to withdraw some, or all, of your earnings.

Which type of IRA can be used to store precious metals?

Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.

An IRA lets you save taxes and pay them off later. This allows you to save more money today and pay less taxes tomorrow.

The beauty of an IRA is that contributions and earnings grow tax-free until you withdraw the funds. Early withdrawals are subject to penalties.

After 50 you can still make contributions to your IRA. There is no penalty. You'll owe income tax and a 10% federal penalty if you withdraw from your IRA in retirement.

Withdrawals that are made prior to the age of 60 1/2 are subjected to a 5% IRS tax penalty. For withdrawals made between the age of 59 1/2 & 70 1/2, a 3.4% IRS penalty will apply.

A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.

Statistics

To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)

External Links

How To

The Best Precious Metals Ira 2022: Things to Remember

Precious Metals Ira, one of the most preferred investment options among investors, is one. This article will show you how to invest in precious metals and what makes it so appealing.

The main attraction of these assets is their long-term growth potential. If we look at historical data, gold prices show incredible returns. Over the past 200 years, gold has increased from $20 per ounce to almost $1900 per ounce. The S&P 500 Index was only up by 50%.

During economic uncertainty, gold can also be considered a refuge. Stock market downturns cause people to sell their stocks and seek safety in gold. As an inflation hedge, gold is also thought to be a good investment. Many economists believe that there will always be some degree of inflation. Physical gold is a way to protect your money from future price increases.

There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. First, consider whether you would prefer to invest in bullion or coins. Bullion bars are typically purchased in large quantities, like 100 ounces, and kept away until they are needed. The coins are smaller versions than bullion bars and can be used to purchase small quantities of bullion.

Second, consider where you want to store your precious materials. Some countries are more safe than others. For example, you might consider storing precious metals overseas if your home country is the United States. You might also want to consider why you would store them in Switzerland if they aren't already.

You should also decide whether to invest in precious metals directly or via “precious-metals exchange-traded funds (ETFs). ETFs are financial instruments which track the performance and price movements of different commodities like gold. These are a way to have exposure to precious metals but not necessarily own them.

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By: Terence Zimwara
Title: Nigerian Central Bank Dismisses Rumors About Demonetized Naira Banknotes
Sourced From: news.bitcoin.com/nigerian-central-bank-dismisses-old-naira-banknote-and-cash-shortage-rumors/
Published Date: Fri, 10 Nov 2023 23:30:51 +0000