The Nigerian central bank has addressed rumors circulating that the previously demonetized naira banknotes are no longer considered legal tender. The bank has clarified that all banknotes it has ever issued remain legal tender and should not be rejected.
Rumors Dispelled by the Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) has officially dismissed ongoing rumors suggesting that the previously demonetized naira banknotes are no longer accepted as legal tender. The bank has also refuted reports of cash shortages in major cities across Nigeria.
In an official statement released on November 8 via X (formerly Twitter), the bank emphasized that the laws governing its operations clearly state that all banknotes issued by the CBN should not be rejected. Additionally, the CBN has instructed its branches nationwide to continue issuing different denominations of both the old and redesigned naira banknotes.
The demonetization process of the Nigerian central bank, spearheaded by former governor Godwin Emefiele, was initially implemented to combat the activities of parallel market foreign exchange dealers and currency hoarders. However, there were local media reports at the time suggesting that the exercise was intended to undermine the presidential campaign of Bola Tinubu.
CBN Warns Against Panic Withdrawals
As previously reported by Bitcoin.com News, the CBN's attempt to demonetize old naira banknotes without an adequate supply of the redesigned banknotes is believed to have resulted in cash shortages. After initially resisting the public's demand for a deadline extension, the CBN eventually relented and reinstated the demonetized banknotes as legal tender.
In its latest warning to entities and individuals refusing the old banknotes, the CBN reiterated that all denominations of banknotes issued by the CBN are legal tender. The bank emphasized that, according to Section 20(5) of the CBN Act, 2007, no one should refuse to accept the naira as a form of payment.
The CBN also urged the Nigerian public to avoid panic withdrawals and encouraged the use of alternative payment methods.
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Frequently Asked Questions
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. That said, they do not always move in lockstep with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They are more rare, so they become more expensive and less valuable.
To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
How much is gold taxed under a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
Each state has its own rules regarding these accounts. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to delay withdrawals until April 1. New York allows you to wait until age 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
How Much of Your IRA Should Include Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. There are many methods to make money off of silver and gold investments.
You may consider buying physical coins such as bullion bars or rounds. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
What Does Gold Do as an Investment Option?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ