Currency devaluation in Nigeria has been the new phase for quite some time now, so we source for an opinionated way out for individuals.
Most Nations in Africa like Nigeria, Zimbabwe, South Africa have been experiencing devaluation of the currency which also spiked up as the world pandemic struck, making several markets unstable and this has as well brought a lot of economic difficulties.
In Nigeria and few Africa Nations, a huge number of people now see investing in cryptocurrency as a major deal as currency devaluation in Nigeria set in again. From stats it’s recorded that Africa is the major adopters of the digital currency (crypto), it’s been stated as well that they have been a massive increase of forex, and crypto traders in Africa since the Covid-19 pandemic started.
In Places like South-Africa, most of the cryptocurrency like Bitcoin has been accepted in malls and grocery stores for payment. Companies like Patricia, Luno, Bundle, and KuBitx have been leading discussions on the adoption of digital currencies in Africa.
The Government and Banks actually benefit when currency devaluation in Nigeria sets in, but there can be a way for individuals as well.
Currency Devaluation in Nigeria: is there a way out for individuals
Yes, I believe there is a way for most individuals to escape this currency devaluation in Nigeria though not fully but at least to some extent. I have a few things in mind which I have tried out and find at least good enough to benefit from currency devaluation in Nigeria.
- Earning in dollars
- Saving in dollars
- Investing in foreign (United States of America) Real Estate
I don’t have everything figured out, and not an economist or any monetary expert but have tried most things out and they are working out.
Aside from crypto many individuals in Nigeria now turn to Rise, a dollar investment company for Nigerians for their Naira-Dollar savings, to escape watching their hard-earned money devalued as currency devaluation in Nigeria begin again.
Earning In Dollars
People who are Earning in dollars are one of the set of people who don’t really get affected when their country’s currency is devalued, either an individual or a company.
These individuals can still be in Nigeria, but work for Companies in maybe united states of america. These individuals will have increase in their purchasing power which cannot be neglected.
As the inflation rate has rised due to the devaluation, it gives them a huge advantage over those who earn in naira.
Saving in Dollars
Most individuals in Nigeria has made saving in dollars their main saving plan, because often times when they have saved enough dollars it becomes a huge sum whenever the Naira is devalued. At this point when Naira is devalued over dollars they can exchange that money to naira and huge profits.
Imagine a scenerio where Mr. A and Mr. B start saving a particular amount in naira and dollars respectively which is equivalent to each currency exchange rate at the time of saving. Mr. A is likely going to be in profit for saving in dollars while Mr. B will be affected when currency devalues.
Investing in foreign Real Estate/Stocks
Investing in Foreign Markets can be another way as well to benefit when your currency experiences devaluation. They are a huge number of people who buy stocks and invest in foreign Real Estate though they might be exchange rate risk but a minimal one in my opinion. Most of these people have their financial rate increase to about 10% or more within the space of a year.
Rise a technology-driven finance company connecting everyday Africans with the best dollar-dominated investment opportunities around the world are really doing amazing job in helping a lot of Nigerians save in dollars, invest in Real Estate/Stocks in dollars and as well have their returns in dollars which they can withdraw in Naira equivalent.
I would have personally added investing in cryptocurrency as it is not regulated by any financial institution. This might be a way out when your currency gets devalued, buy when things are normal and sell when currency devaluation sets in. Basically there is no expertise proof to how this will work out effectively but personally i think it will be a good catch.
Every business is a risk you know, So tell what you feel about points i have listed in this post and share any other tip you think people can use to benefit when they experience currency devaluation.