₦airaland Forum

Please i don't know tell me

SOME PEOPLE DO IT TO MAKE MONEY TRANSFER ABROAD EASIER.

SOME TO KEEP THEIR CURRENCY IN FOREIGN DENOMINATIONS BECAUSE OF RISK OF DEVALUATION OF THE LOCAL CURRENCY....


FOR EXAMPLE IF 1 DOLLAR IS EQUAL TO 160 AND THEN LATER ON THE SAME 1 DOLLAR IS EQUAL TO 180 NAIRA. FOR A COUNTRY THAT IMPORTS THE CURENXY IS DEVALUED SO THOSE HOLDING NAIRA WILL NEED MORE NAIRA TO BUY A DOLLAR THAY IS 180 NAIRA INSTEAD OF 160 NAIRA TO BUY 1 DOLLAR SO A RICH SMART INVESTOR OR INDIVIDUAL OR BUSINESSMAN IN AN IMPORT DEPENDENT COUNTRY WILL KEEP SOME CASH IN A FOREIGN CURRENCY DOMICILIARY ACCOUNT TO REDUCE THE RISK OF INFLATION AND CURRENCY DEVALUATION OF THE COUNTRYS MAIN CURRENCY

so now dat d naira hs been devalued, what is my benefit for having some 200,000 dolars in my domiciliary acct.

bigtimemugu:
so now dat d naira hs been devalued, what is my benefit for having some 200,000 dolars in my domiciliary acct.

stint:
Dont you get. Lets say last month you had ten dollars in your account. That 10 dollars was 1600 naira, Today, your money is now 1800. Thats the benefit. But if you had 1600 naira, last month, today your money is no longer up to 10 dollars. Do u understand now?

Dont you get. Lets say last month you had ten dollars in your account. That 10 dollars was 1600 naira, Today, your money is now 1800. Thats the benefit. But if you had 1600 naira, last month, today your money is no longer up to 10 dollars. Do u understand now?