The Nigeria Naira currency has been losing its value in the financial market over the years. The value of United States Dollars has been skyrocketing in the Foreign Exchange market thereby making the Naira trade low against the USD dollar.
These issues have created lots of panic in Nigerians because Nigeria solely depends on the importation of most of the products they use in the country.
The rising of the Dollar again Naira is very disastrous and hence to stay afloat from this inflation in the country, you have to be saving your money in Dollars.
Saving in Dollars is now one of the greatest investment opportunities in the FOREX space because it comes with a little risk and also as Nigeria is always importing their product they will surely need the dollar.
So if you are looking for how to save and invest in Dollars, this blog post will provide you with the full information you need to make you successful in Dollars investments in Nigeria.
How Does Dollar Investment Work
The Dollar investment is highly profitable in Nigeria. It is a very simple investment and with little financial knowledge and navigation, you can make a good profit from this investment scheme.
The Dollar investment works by you buying the United States Dollars at a cheaper rate and holding the currency and once it has appreciated against Naira, you sell it off and take your profit.
A simple illustration of this investment is if you buy a Dollar at the rate of NGN1,000/$ and hold it for some months when there is an increase in the rate that is it starts trading at the rate of NGN1,200/$ you then sell it off and make a profit of NGN 200. So this is how simple this investment is.
Now that we have seen how the Dollar investment works the next is how to invest in Dollar.
How To Invest In Dollars In Nigeria
As explained earlier you only need to buy the Dollar at a cheaper rate and hold it till the rate becomes high. The next question is, where can you buy the Dollars?
There are many ways by which you can buy Dollars in Nigeria. You can be Digital dollars on some of the fintech applications in Nigeria. The common platform that people buy Dollars and hold in Nigeria are:
- Chipper Cash
- Grey. Co
- Binance(USDT)
- Luno(USDC)
- Bybit(USDT)
- Cowrywise
- PiggyVest
You can buy Dollars on any of the platforms mentioned above and keep it in your account till there is a rise in the rate of Dollars to Naira after which you will sell it off and take your profits.
To buy Dollars in any of the platforms mentioned above, you need to download the mobile application of the platform you want to join and then create an account and find your account with Nairai. After funding your account with Naira, you can then purchase a Dollar from your account and start earning a profit when there is an increase in the rate.
Another way you can buy Dollars is by purchasing the currency in Cash from Bureau De Exchange. You can visit any of the Bureau De Exchange stores closer to you and buy the Dollar by giving the seller the Naira equivalent.
After you have gotten the Dollar you can hold it or deposit it in your domiciliary account if you have one and when the rate is now higher than the amount you bought you can withdraw and sell it back to the Bureau De Exchange at the new rate and make a reasonable profit.
Risks In Dollar Investments
For every investment, there is always a risk attached to it. However, the risk attached to Dollar investment is very low and some of the risks attached to Dollar investment are:
1. Change in Government Policies
Nigeria’s government is always skeptical about Dollars in Nigeria and a change in policies can affect your investment. One of the recent changes is the manhunt of Bureau De Exchange operators in Nigeria. This can affect your investment because it will be hard for you to buy or sell your Dollars.
2. Liquidity of Dollar
Another risk you might encounter is the liquidity of dollars to Naira. This means that Naira might start appreciating against the Dollar which means that you will start running a loss of your investment because you bought it at a high rate and now it selling at a rate lower than the amount you bought.
3. Digital Platform Policies
If you buy Dollars using the digital platform listed above, there may be a change of policies that can warrant them closing your account without any refund. This can be very disastrous so you have to verify and read the terms and policy of usage of each of the platforms to avoid your account being terminated.
4. Fraudulent Activities
In the Dollar investment, there are lots of fraudulent activities going on in the space, so to be safe from this scam, be sure the person you are trading with is real and legit.
Conclusion
Dollar Investment is one of the easiest investments you can do in Nigeria with a good ROI. It all involves buying a Dollar at a cheaper rate and selling it at a higher rate. It has some risks which you need to consider before venturing into the investment.
