Its no longer news that the Naira has lost over 20% of its value against the major currencies of the world these last few months. Everyone agrees that on a macroeconomic view, that's bad for the Nigerian economy. What most Nigerians don't seem to realize however is that this isn't just an issue for the finance minister and international traders, but an issue for each and everyone person who has his savings in the Naira.



Simply put, as the day goes by, your Naira in the bank can buy just a bit less than what it originally could. This may not look instantly obvious to you, but it becomes more so when you consider the fact that because of the sliding value of the Naira, your purchase costs a little bit more than it originally did. This is the way inflation works.

To bring this home, if you had saved your N1,600,000 million up in dollars, few months back when the the rate was 1:160 (USD:NGN) You would have had $10,000. Today if you were to convert it back to NGN, at the current rate of 1:199, you would be making about NGN400,000!

Are you caught up helplessly in this? The answer is pretty simple, and i know a few people who have positioned themselves to be 'immune', or at least better placed to deal with this. All you need to do is to look to save your money in the currency that the Naira is sliding the most against. The US Dollar is always a good bet, given the strength and relative stability of the US economy, but you could also do CHF(swiss frank), GBP(Great Britian Pound). I wouldn't do the Euro right now, given the uncertainty in europe, caused by inflation concerns, Greek debt, and the Ukraine crises.

I like to keep my posts simple. If you would like to know more about taking currency positions, please send me a PM

It is vice viser

do you mean vice-viser in terms of loosing money saving in dollars ??, common it so obvious

fiverrwin:
It is vice viser

explain better please

Do you save in the money in a dorm account or a safe at home? If dorm account, can one withdraw from it when there is need to do so?

This the problem with Nigeria. The Economy is too "dolarized", it is import dependent and consumption oriented which puts pressure on thre demand for the dollar thereby killing the Naira. Besides, the CBN should introduce the use of foreign exchange forwards while the SEC and Stock exchange should introduce other currency risk management products like currency swaps. These are the things that companies and banks use here in the US. It stabilizes the currency while providing job for investment bankers and accountants. I cry for Nigeria

dabosuker:


explain better please

$ to naira is never stable. If naira had appreciate in value and you both at say N160 to $, it means it ccould have been N150 to a $. You would have lost N10 on each dollar. Now $ is N199. It is not pernent. It can drop tomorrow. Currency biz is not one sided. It is 50/50. Hope I cleared it small.

fiverrwin:


$ to naira is never stable. If naira had appreciate in value and you both at say N160 to $, it means it ccould have been N150 to a $. You would have lost N10 on each dollar. Now $ is N199. It is not pernent. It can drop tomorrow. Currency biz is not one sided. It is 50/50. Hope I cleared it small.

are you really in Nigeria when has naira really appreciate in value in the trend of times ,it keeps losing value because of geopolitical activities and bleepup forex reserved. i choose and will still choose to always save my earnings in $$, it is always more in value when u change it to naira

@Op, given the current exchange rate (Naira to dollar), now may not be a good time to save your money in dollar. Supposing you buy dollar now and naira begins to gain value against the dollar, then you begin to make losses.

But is it really a good idea to buy dollar now? Black market rate is even btw 215 n 220. Won't one b making loss buying dollar now?

drpips1:
Its no longer news that the Naira has lost over 20% of its value against the major currencies of the world these last few months. Everyone agrees that on a macroeconomic view, that's bad for the Nigerian economy. What most Nigerians don't seem to realize however is that this isn't just an issue for the finance minister and international traders, but an issue for each and everyone person who has his savings in the Naira.



Simply put, as the day goes by, your Naira in the bank can buy just a bit less than what it originally could. This may not look instantly obvious to you, but it becomes more so when you consider the fact that because of the sliding value of the Naira, your purchase costs a little bit more than it originally did. This is the way inflation works.

To bring this home, if you had saved your N1,600,000 million up in dollars, few months back when the the rate was 1:160 (USD:NGN) You would have had $10,000. Today if you were to convert it back to NGN, at the current rate of 1:199, you would be making about NGN400,000!

Are you caught up helplessly in this? The answer is pretty simple, and i know a few people who have positioned themselves to be 'immune', or at least better placed to deal with this. All you need to do is to look to save your money in the currency that the Naira is sliding the most against. The US Dollar is always a good bet, given the strength and relative stability of the US economy, but you could also do CHF(swiss frank), GBP(Great Britian Pound). I wouldn't do the Euro right now, given the uncertainty in europe, caused by inflation concerns, Greek debt, and the Ukraine crises.

I like to keep my posts simple. If you would like to know more about taking currency positions, please send me a PM

How can one take currency position in Nigeria? No time man tell us!

Saryea83:

How can one take currency position in Nigeria? No time man tell us!

Oh, Thats not so hard todo, all you need is get an account with a Forex broker that deals on currencies and the rest trading instruments, fund your accounts and decide which positions you can afford either day deals or weekly deals, PM for more details if interested in getting started.

drpips1:


Oh, Thats not so hard todo, all you need is get an account with a Forex broker that deals on currencies and the rest trading instruments, fund your accounts and decide which positions you can afford either day deals or weekly deals, PM for more details if interested in getting started.

Oya hint me na! Hw do i PM u?