WHICH IS BETTER: NAIRA INVESTMENT OR DOLLAR INVESTMENT?
Are investments the same irrespective of the currency in which it is done? Are naira investments the same as dollar investments? Do they yield the same returns? Which is better: naira investment or dollar investment?
The truth is currencies have different values and this difference is the key determinant of which investment is more profitable. The dollar is a strong currency and has more value than the naira and that automatically makes it better.
1. Devaluation: it was in 1985 that naira had more value than dollars. A naira then was worth 5.21 USD. Now, a dollar is worth 381 naira. Imagine. And with the current economic situation in the country, the hope of its rising is slim. Last December, a dollar was worth three hundred and eighty naira, and in February, it rose to four hundred and twelve naira. Any transaction done at that period would have cost a fortune for those who do not have savings or investment in dollars. That’s why the wise keep both currencies but they invest more in dollars. They know that no matter the devaluation that occurs to dollars, it would still yield more interest than naira.
2. . Inflation: it was just last week that it was all over social media that a liter of fuel is now being sold for two hundred and twelve naira. Just like that. What does this imply? Another increase in prices of goods. That means that if 36,000 naira could pay for 150 liters of fuel before. It no longer can. Its value has reduced. Meanwhile, if you had dollars at hand, the extra increase in the value of the dollar would most likely cover the inflation.
Now, some might want to ask how can I start saving in dollars? There are banks that offer this service. Just last two years, piggy bank introduced Flexdollar to enable people make these transition easily. You can join the train too. Still, confused? Contact the SecureCapital team.