The Naira is Losing Value, Start Saving your Money in Dollars now! (Learn How)

The Naira is Losing Value, Start Saving your Money in Dollars now! (Learn How)

In an article by the People Gazzette on Monday, 25th of June 2022, it was brought to the notice of many Nigerians that the Naira is trading at 670 Naira to the Dollar on the black market. This was the peak of a series of Naira falls that have happened over the previous years which means that Naira has lost over 60% of its value within the last three years.

The Naira is Losing Value, Start Saving your Money in Dollars now! (Learn How)

What does this mean for Nigerians?

Nigeria is an import-dependent economy and this means that we regularly need to exchange our Naira for foreign currency to bring goods into Nigeria. Cars, clothing, food items, drugs, manufacturing materials, heavy equipment and petroleum are the top imports into Nigeria. When the Dollar to Naira rate is increased, the cost of bringing these items into Nigeria increases and the effects are slowly felt across various sectors of the economy. Gadgets become more expensive, and it becomes more expensive to produce food such as food, biscuits, etc... If you earned two hundred thousand Naira per month in 2016, you earned $1,000 every month but now, in 2022, even if your earnings have increased to 300k per month, you earn about $400. Your purchasing power has been seriously affected and the things you could buy for 200k 6 years ago, you can’t buy them now for even 400k.

How can you avoid this?

There are three major ways to find your way around the devaluation of the Naira.

The first way would be to find a job with an international company that pays in foreign currency. Sites such as LinkedIn, Upwork, Fiverr, and Freelancer allow Nigerians to find jobs online for international roles. However, this option is not available to most people and usually works for certain soft skills.

Secondly, you can convert your money to cryptocurrency stablecoins such as USDT, BUSD, or USDC. Stablecoins are coins that have fixed values and do not rise and fall like other coins. Sites such as Binance and FTX allow you to trade your Naira for these stablecoins. However, because the Nigerian government has placed a restriction on the usage of cryptocurrency and cryptocurrency exchanges in Nigeria, it could be more difficult for you to use this method. Also, you could be skeptical about keeping your money in cryptocurrency.

The safest and surest way to avoid the devaluation of the Naira is to save your Naira in dollars on a Nigerian savings platform. The safest mobile app right now is myStash. myStash allows you to save your money in Dollars directly from your bank account either manually or automatically. It’s also free to use. You can visit their website to download their app and save your financial future.

Finally, don’t forget that your poor financial habits are also bound to make you lose more money. Spend wisely, avoid taking unnecessary loans and hedge a savings plan against the Dollar and you are on the path to financial freedom.



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