How to save money in dollars as a Nigerian

If you have ever wondered how you could save in dollars, you should know that you’re not alone. Every smart-thinking Nigerian should know that one of the ways to beat this high inflation and naira depreciation is to save in dollars.

The Nigerian currency seems to be on a free fall against the dollar, and there’s no sign of it abating soon. And that, coupled with other factors has brought so much inflation in the economy.

We have no choice but to turn to the dollar.

This is one of the safest and easiest ways to hedge your naira against inflation, as inflation devalues the purchasing power of the Naira currently in your hand.

In this vein, saving in Naira should be discouraged on all grounds.

For example, if you kept 3500 naira last year, which could have bought a bag of cement last year, that same amount cannot afford that same bag of cement, as a bag of cement now costs about 15000 naira. So this is a testament to the fact that for a nation like Nigeria, every naira saved depreciates with time.

Again, you as an individual must save. Either for the long term or a saving done to purchase something in the shortest time possible. You may even want to save for projects. Whatever the purpose is, you should save in dollars. It can then be converted again to Naira whenever the occasion demands it.

With this article, you will have first-hand knowledge of the various ways this is possible, which will help you make an informed choice on any that suits you well.

Again you should be aware that in all currencies of the world, the US dollar is the most dominant, and seen as a very stable alternative.

This article shows you how to save in dollars and the different financial platforms that make that possible

3 ways to save in dollars in Nigeria

Here are avenues to save your money in dollars in Nigeria:

1. Use of Domiciliary account

A Dom account for short, is a type of account option offered by the traditional bank in which you’re able to receive funds or deposit in dollars or any major foreign currency.

With the Dom account, you’re able to save your money in dollars. All you have to do is to decide the amount you want to save, and then convert to dollars by buying the dollar equivalent. Then you deposit it on your Domiciliary account.

The account opening process of a domiciliary account is the same as that of a current account. You may need two guarantors who are operating a current account in any bank, as part of the requirements.

With this, your naira will not be affected by the rising inflation.

2. Convert your Naira to stable cryptocurrency assets like USDT

USDT is one of the stable cryptocurrency assets, created by Tether. It acts as the digital dollar or one can say that it’s the digital equivalent of the US dollar.

It will interest you to know that each USDT is equivalent to $1 and it’s backed by the same one dollar in physical reserves.

Theoretically what this means is that the USDT is not affected by market forces and volatility. It’s stable and acts as a safe alternative to the dollar in the digital space.

To save your money in this digital dollar, all you need is to buy this coin, and that’s all.

First, you will have to register with any crypto exchange platform where you can buy the USDT.

Next is to buy the USDT with any amount you want. 

Then you can hold on to it for as long as you want. It’s another viable option to hedge your dollars against the naira.

You can buy USDT with Naira on Bybit.

3. Use a fintech app

Fintech has caused so much positive disruption in the way financial transactions are implemented today. With the advent of fintech, life has become more easier and convenient as regards financial matters.

Most fintech apps today allow you to save money in various currencies of your choice, while some go the extra mile to give interest on such savings.

All you need to do is download any of the fintech apps, do all registration and documentation, deposit money in naira, and choose to convert it to dollars or any foreign currency of your choice.

It will be automatically converted to dollars using the current exchange rate.

There, you can hold on for as long as you choose before converting back to the naira.

Some fintech apps to save money in dollars

1. Piggyvest

Piggyvest is a very popular online saving and investment app in Nigeria, as most Nigerians who have an interest in savings have this app on their smartphones.

This app allows users to earn up to seven per cent interest in their savings of dollars, while up to fifteen per cent for saving in Naira.

This app is quite easy to install, as it’s available in the Google or Apple Play Store.

Having downloaded, registered, and funded your account with naira, then converted to dollars.

2. Cowrywise

Cowrywise offers an opportunity to save in dollars. It’s a common fintech app for saving both in dollars and naira.

All you need to do is download the app from Google or Apple Play Store and install it. Proceed to do all necessary registration and deposit in naira the amount you intend to save. 

Then you can convert it to the dollar equivalent and hold on to it. 

Cowrywise also offers interest on money saved. However, the interest rate is not specified as it fluctuates with time.

3. Bundle Africa

This app is more than an online saving app. It is also a crypto wallet that allows you to buy and save in stable cryptocurrency assets like the USDT.

This app offers its users 6 per cent interest annually on savings.

As with other fintech apps, it’s available on Google or the Apple Play Store. 

Download, install, register and fund your account. And thereafter convert to dollars or any stable cryptocurrency.

Conclusion

For the average Nigerian, the issue of inflation rocking the economy is a nightmare, and such savings for short or long-term in the naira should be discouraged.

The US dollar is stable, as well as Stable crypto coins like the USDT. 

While opening a domiciliary account may be a viable option, many may not meet the requirements and criteria for opening such an account, as it may seem too cumbersome to many.

In this case, the use of fintech apps becomes the easiest possibility, which is readily available on the Play Store and requires little or no amount of effort for registration.

However, it should be noted that all fintech apps may charge certain percentages for withdrawal. On this note, you must do thorough research to choose out of the several options available.