Dispelling Rumors and Rejecting Cash Shortage Reports
The Central Bank of Nigeria (CBN) has dismissed rumors suggesting that the previously demonetized naira banknotes are no longer legal tender. In a statement issued on November 8th, the bank emphasized that all banknotes issued by the CBN remain legal tender and should not be rejected by anyone.
The demonetization process, spearheaded by then-governor Godwin Emefiele, was initiated to counter activities of parallel market foreign exchange dealers and currency hoarders. However, there were local media reports at the time claiming that the exercise aimed to disrupt the presidential campaign of Bola Tinubu.
Despite initial resistance to extending the deadline for demonetization, the CBN eventually relented and made the demonetized banknotes legal tender again. This move was in response to the public's demand and the perceived cash shortages caused by the demonetization process.
CBN Warns Against Rejection and Panic Withdrawals
The CBN has issued a warning to entities and individuals who refuse to accept the old banknotes, reiterating that all denominations of banknotes issued by the CBN remain legal tender. Refusing the naira as a means of payment goes against the provisions outlined in Section 20(5) of the CBN Act, 2007.
The central bank also advised the Nigerian public to avoid panic withdrawals and encouraged the use of alternative modes of payment. By embracing alternative payment methods, individuals can contribute to a smoother transition during the demonetization process.
It is important for the public to understand that the CBN's laws clearly state that all banknotes, both old and redesigned, should be accepted as legal tender. By adhering to these regulations, individuals and businesses can ensure a seamless circulation of currency in the country.
As the CBN continues its efforts to combat parallel market activities and promote financial stability, it is crucial for everyone to cooperate and support the ongoing demonetization process. By doing so, Nigeria can strengthen its economy and foster a more efficient financial system.
What are your thoughts on the Nigerian Central Bank's reaffirmation that demonetized naira banknotes remain legal tender? Share your opinions in the comments section below.
Frequently Asked Questions
How can I withdraw from a Precious metal IRA?
First, determine if you would like to withdraw money directly from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
Because you don't have to store individual coins, bullion bars take up less space than other items. You will need to count each coin individually. However, keeping individual coins in a separate place allows you to easily track their values.
Some people like to keep their coins in vaults. Others prefer to store them in a safe deposit box. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
What precious metal should I invest in?
This question depends on how risky you are willing to take, and what return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. You might not want to invest in gold if you're looking for quick returns. If patience and time are your priorities, silver is the best investment.
If you're not looking to make quick money, gold is probably your best choice. Silver may be a better option for investors who want long-term steady returns.
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You control how much you take each year. And there are many different types of IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. This account may be worth considering if you are looking to retire earlier.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. You won't have the hassle of making deposits each month. You could also set up direct debits to never miss a payment.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
The growing trend of gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
Owners can invest in gold bars and bullion with the gold IRA. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. The gold IRA can be used to protect against inflation or other potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
By: Terence Zimwara
Title: The Nigerian Central Bank Reiterates That Demonetized Naira Banknotes Remain Legal Tender
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