I don’t know if you invest in dollar denominated investments or converted some Naira to USD to reduce the risk of devaluation on your Naira. If you did any of the above, then that was definitely a smart move.
As an investor your ears are always on the ground for market changes right? So how does the resumption of international flights on September 5th 2020 affect you?
Here are a few pointers
- CBN has stated that they will begin the sale of forex to BDC’s at the rate of N386/$1. If you intend to travel out of the country, you can buy forex at the official rate of N386/$1 from the banks. All you need to do is show your passport, visa and tickets and voila, your’e good to go.
- On the flip side, the announcement of international flights resumption and the sale of forex to BDC’s has caused the market to react. Currently the Naira to Dollars rate has began dropping from highs of N477/$1 to N440/$1. Check out the graph below courtesy of Abokifx.
If you locked in your USD at a rate lower than the current market rate of N440/$1, will you be looking to sell? Or did you buy USD at a price higher than the current rate? Are you looking to hold?
At the end of the day, whatever your decision is, you need to act. Either selling or holding, there is an impending recession as the Nigerian GDP shrunk by 6.1% in Q2. The UK is currently in recession and so will other economies.
I would easily say, if you are liquidating some of your dollars to Naira, what better move could you make than investing it on Rentcrowdy to earn upto 26.4% p.a?