Nigerian Naira’s Devaluation is no more news. The question asked now is, what is the way forward? For those of you who have money in your Nigerian bank accounts, you know that you are loosing money by the day as a result of the uncertainty of our dwindling economy.
The Nigerian Central Bank began the process of devaluation of the Naira,
this may drive people towards cryptocurrencies as an alternative investment
The centralized monetary policies inherently flawed, proves the ongoing
collapse of government-formed finance structure of many countries,
including Greece, Venezuela and China.
Now, Nigeria is also falling into the same category, thanks to the falling
oil exports following international conflicts. In the current economic
structure, the majority of international trades are carried out using
reserve currencies – the US Dollar. While imports and exports are vital for
the countries to maintain economic growth, the value of the native currency
against the reserve currency determines the country’s capability in smooth
As it seems, Nigeria is suffering right there...at the moment...
The currency, so far been pegged at about 199 per dollar has crashed by
almost 100 points in recent times. The actual trading value of Naira stands
at around 280 to 300 Naira per dollar, while the current black market rates
are around 420 Naira per dollar. The Nigerian Central bank has announced
recently that the value of country’s legal tender will soon be market
driven as the bank intends to get rid of the peg which was in place for
over 16 months.
The main intention behind central bank’s decision is to prevent rapid
depletion of the country’s foreign exchange reserves. This move has indeed created panic as investors during the initial days as their investments will end up getting diluted by almost 50 percent.
Truth is, the devaluation of the Naira has left you (Investors) thinking on where to put your money. I say, the only Protection for investors against devaluation of Naira is for one to invest in Cryptocurrencies.
Ever heard of Cryptocurrency (Bitcoin, OneCoin) before? If no, cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.