seanwilliam:
U said the 500k will worth like 250k because of inflation if the person saves in dollars , now pls tell me what will happen if the person saves the 100k in bank and inflation still happens ?

Is it not better for me to save it in dollar and get a better sum like 250k to match the future inflation?
Or u want me to keep the 100k in bank that will worth like 50k if inflation happens ??

lereinter:


Someone that saved his naira when dollar was 360

Now that dollar is 505

Dollar will continue to rise


You no get point

thebosstrevor1:
[s]This is for all those salary earners, retailers, remittance receiver and those who are not medium to big time traders.

What is the essence of saving part of your salary, income or remittance in dollar, if you are expecting dollar to increase against the naira? Even if dollar is 1000 in the next 3 years, how does it improves your income or financial status?

Imagine, you save 100 dollars every month ×12 = 1200, that is 606,000 using current exchange rate of 505, if dollars becomes 1000 naira in 3 years, that will be about 1.2 million knowing that inflation would have increase to almost 22%, that means your 1.2 million has already been devalued because of inflation.

No normal person will pray for naira to be 1000 naira against a single dollar in 3 years, it infact makes your dollar worthless except you are using it for international transactions or using it for business, you should be praying for the fall of dollar against the naira to make your naira worth it, logically when you look at it, just saving your dollar when naira is depreciating hurt you, you shouldn't do it.

Dollar can only be useful if it is doing business on your behalf and earning interest, even if at the end, the naira reaches 1000 against a dollar, you still benefit because it becomes a good leverage against inflation.

The real beneficiary of saving their money in dollars are the big dogs of our society, they make dollar work on their behalf by trading and investing it in asset that bring interest and profit and not by just making it lie down in their save.[/s]

Who is this one smh

seanwilliam:


Hmmm. if he leaves the money in his bank now that dollar is 500/1$, and then the next 3 years , dollar rises to 1000/1$, what will happen to the money in his bank ?.

moonsledge:
I don't really know how people reason sometimes.
Let's take a practical example,
If Mr A and Mr B has 100,000 naira and they want to buy a television worth 90,000 naira.
They decided to save their money in a bank for at least 3 years before buying the television.
Mr A saves his money in his savings acc while Mr B converts his 100,000 naira to USD at the exchange rate of 500 to a dollar, which means he now has 200usd.
After 3 years, they decided to withdraw their money and buy the television.
Mr A withdraws his 100k and discovers that because of inflation the television is now been sold for 150,000naira.
Mr B withdraws his 200usd and discovers that naira is now 1,000 to a dollar. That means his 200usd is now 200,000 naira.
Mr B can now afford the television and still have some balance in his account.

Hope you get the drift now.

Ijebulogic:
Gosh, this is the funniest thing I have read on Nairaland in years. OP is just joking (surely!!) Why is everybody taking it seriously?
Meanwhile if OP is serious....wahala dey for person wey no study Economics o!

aribisala0:

Not true there is interest

Clearly you are just mouthing off and here to spout opinions without facts, figures or analysis

Letmoveon:
OP, Nairalanders are too ignorant when it comes to finance, so they won't understand what you are trying to say. U can see how they are condemning u. What the OP is trying to say is, It is not wise to just safe ur money in the bank, Weather in Naira or Dollar. It is better to put ur money in profitable business that will yield u return. Rich people don't save money, they put their money in effective use. The reason they get richer. What the OP has posted here is too deep for Nairalanders to understand.

yetunsbay:
lol so funny what's deep in this.

One thing I know is that saving in USD is far better than Naira. And yes,while taking inflation in cognisance sef.