There is a huge probability that the Naira value will keep depreciating against dollar, so the best thing you can do for yourself as a Nigerian is pulling your finance into dollar investments like U.S Stocks etc
In this article, I will be showing you how to invest your hard-earned money (naira) in dollar based investments in other to protect your money from naira devaluation especially if you live right here in Nigeria.
Before we dive into the topic 5 Dollar investments in Nigeria I think it’s wise to talk about why it makes economic sense and why is good for your financial health to invest in dollar base investment as a Nigerian,
as a Nigerian living in Nigeria, recently you would noticed that the Nigerian naira was devalued against the Euro and US dollar some weeks back,
and the black markets exchanges dollar on a 490 naira per dollar and now it has increased to 572 US dollar and as it seems instead of reducing against the dollar,
there is a greater chance that it will keep on increasing rather which is very annoying because it means that the naira paper either in the bank or in your purse or savings is losing its value each time the dollar increases.
And this means you can’t even do something reasonable with a huge sum of the naira value so in order to tackle this problem and make sure the naira devaluation does not affect you and your finance,
would be to take some of your naira and convert it to dollar then use the money to invest in dollar investments or dollar-denominated assets or dollar investment.
Here are some of the dollar investment you should consider
1: U.S Stock
2: Dollar Mutual Funds
4: Eurobonds and
5: Saving In Dollar
There are so many apps you can use to invest in US stocks such as the bamboo, chaka and troove,
with these apps you can convert your naira into dollars and use the dollar to buy shares in the US company that are publicly quoted in the Euro stock or America stock market like the
And the sweet thing about buying this shares is that you can hold on to these shares for many years as the company continues to grow,
and then you don’t need to worry about the naira devaluation since you have invested in the dollar or euro value economy you don’t need to worry about having a PC / laptop because you can do that with your smartphone.
Although the exchange rate from these apps are a little bit higher than the black market and the minimum amount you can invest (bamboo for example) is $20 u.s. dollar to register for bamboo click here for trove click here https://troveapp.co/
Dollar Mutual Funds
A dollar mutual fund is a collection of different assets that are strictly dollar-denominated, a dollar mutual fund comprises of different securities like a
Corporate issue bonds Government even
Short-term dollar deposit
Equity stocks ,
although they are different companies that offer dollar mutual fund and they have their own different components that make up their own mutual fund for example stanbic ibtc mutual fund is different from afrinvest mutual fund
although dollar investments on mutual fund typically do not give juicy return of investment compared to the US stock market ,
on average mutual fund give a 69 percent returns per year while the US stock market returns an average of 10 -11 percent return of investment every year but a dollar mutual fund is more safer and less risky which is why it is even advisable for beginners investors to store, save and invest their money on dollar mutual fund.
In Eurobond, a fixed income debt instrument, that is nominated in a currency that is different from the currency of the country where the Eurobond was issued.
Basically is an instrument of an investment where a government or a corporate organisation borrow a huge sum of money from the general public in a foreign currency with a promise to pay back that money to them with interest periodically over a number of years.
Although, there is another decent option investing in eurobond dollars, the only disadvantage is that they are typically used to fund long-term projects so if you invest in dollar eurobond, you might be tying down your finance for quite a long time.
But you would be getting your interest before the expiration of the dollar eurobond but you should know that dollar eurobond are expensive to get into,
the minimum investment could range from 10,000 dollars – 100,000 u.s dollar but if you are lucky enough you could find a dollar eurobond that is from $1000
A Portfolio dollar investment like rise demands that you fund your account wallet with naira and it will automatically convert it to dollar which you can now use to invest to any of the portfolio Investments like
fixed income portfolio or
real estate portfolio.
You can invest with as little as $10 and the investments can last for a period of like 3 months, 6 months or 1 year and their interest rate is very fair.
You know instead of unnecessary spending it is always advisable to pull up at least a reasonable portion of your finance into investments or savings,
how much more converting and saving your naira value into U.S dollar and earning interest on it?
with savings apps like cowrywise and piggyvest flex dollar account you can now convert your naira into U.S dollar and still earn interest of around 7 percent per annum just by saving without any investment so instead of lavishing and living on naira value whynot pull your finances into dollar investment.
And of course I’m sure you know the current value of naira to US dollar and there is a huge probability that the naira will keep depreciating if care is not taken so the best thing you can do for yourself is to invest in one of the 5 dollar investments I have mentioned in this article.