IMF: eNaira, other crypto better than bitcoin – Newstrends
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IMF: eNaira, other crypto better than bitcoin

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The IMF says central bank digital currencies (CBDCs) such as eNaira are a better bet than cryptocurrencies including bitcoins and other altcoins.

The IMF Managing Director, Kristalina Georgieva, stated this, adding that the CBDCs were gaining momentum after moving from theoretical to practical explorations.

Georgieva stated, “In order to become familiar with the bits and bytes of digital money, central banks are getting to work.

“We don’t yet know how far and how fast CBDCs will go, since they are still in their infancy. As a result, central banks are building up their ability to harness new technologies – so that they will be ready for whatever lies ahead.”

There are about 100 or so countries that are exploring CBDCs with support from the IMF.

“In contrast to private digital currencies, CBDCs can potentially offer greater resilience, more safety, greater availability, and lower costs when designed prudently.

“Crypto assets, which are inherently volatile, are not backed by any government. It is possible that even the best-managed and regulated stablecoins cannot compete with a well-designed and stable central bank digital currency,” she said.

According to her, global central banks are committed to minimizing the detrimental effects of CBDCs on financial intermediation and credit provision. In order for the economy to function properly, this is imperative. The CBDCs we studied are not interest-bearing, which makes them useful, but not as attractive as traditional bank deposits as a vehicle for savings.

Several CBDC projects were examined in-depth in a recent IMF paper.

The IMF had previously raised concerns about crypto assets threatening financial stability and consumer protection and eating into banking sector market share.

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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CBN jacks up interest rate amid soaring inflation

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CBN jacks up interest rate amid soaring inflation

The Central Bank of Nigeria (CBN) on Tuesday raised the interest rate from 22.75 per cent to 24.75 per cent amid soaring inflation.

Governor of the central bank, Olayemi Cardoso, made this known after the two-day Monetary Policy Committee (MPC) meeting held on Monday and Tuesday.

The country’s latest annual inflation rate jumped to 31.70 per cent from 29.90 per cent for last month, fueled by a continuous rise in food prices.

Cardoso disclosed that the MPC voted to adjust the asymmetric corridor around the MPR at +100 to -300 basis points.

He said the committee voted to retain the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and adjust the CRR of merchant banks from 10 per cent to 14 per cent.

The committee also voted to retain the liquidity at 30 per cent.

He said, “Members noted the continued rise in headline inflation driven largely by food prices, because of supply shortages, and high cost of Logistics and Distribution.

“The committee, therefore, was of the view that addressing food insecurity is key to containing current inflationary pressures.”

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