It is no more news the Naira is now constantly falling against the Dollar in the Forex market. As at the time of making this post, the official rate of the Dollar to Naira is pegged at ₦411.5 and the parallel market shows the further fall of the Naira to the level of ₦504 today.
Due to the falling value of the Naira, it is wise to start saving in Dollars more often than in the Naira these days in Nigeria. Take for instance you saved ₦100k (One hundred thousand Naira) in your bank account last year when the Dollar was still trading between ₦420 to ₦450. The value of that money in the USD 🇺🇸 as at last year would be ₦100k divided by let's say ₦420, that would be $238.09.
So assuming you saved the sum of $238.09 in your bank account last year instead of saving the ₦100k ( hundred thousand Naira), you would still have your $238.09. Now in today's market, multiply that rate by ₦504 and the value of your money in Naira would be ₦119,997.36 (That is roughly an hundred and twenty thousand Naira).
So in reality, you have had an increment of almost ₦20,000 (twenty thousand Naira) ontop of your ₦100,000 (hundred thousand Naira). So saving in the United States Dollars or either in Pounds or Euros is an investment instead of saving in Nigerian Naira. You will also agree with me that Nigerian inflation has risen since last year which means what you could buy with ₦100k last year, you cannot buy it this year anymore. In a simple sense you lose money while saving in Naira while you save money and gain money while saving in the United States Dollars 😄.
So How Can You Start Saving In Dollars In Nigeria?
In order to start saving in Dollars in Nigeria, you will need to have a dormiciliary account (Dollar Account). You can get a domiciliary account with any commercial bank in Nigeria. You can get one with GTBank, Zenith Bank, UBA, Fidelity Bank, Access Bank, First Bank and so on.
What Is A Domiciliary Account?
A domiciliary account is also called a foreign account. It is an account you can have with any local commercial bank 🏦 in Nigeria that is denominated in foreign currencies like the USD 🇺🇸, the Pounds 🇬🇧 and the EUR 🇪🇺. You can carry out virtually all transactions with the account the way you do with your savings account. It is important to note all dormiciliary accounts are treated as current accounts.
What Are The Requirements For Getting A Domiciliary Account In Nigeria?
* Account Opening Forms (differs per bank)
* Your Signature
*Two (2) Recent Passport Photographs
*Address Verification Documents; such as a utility bill
*Valid Identity Card... Like international passport, driver’s license, or national ID card
*At least 2 (two) referees with current accounts with any commercial bank in Nigeria
°You do not need to make any deposits to open a domiciliary account in Nigeria.
If you already have an account with any of the commercial banks in Nigeria, you can just walk into any of the branches and ask about opening a dorm account. It will not take much time to process and you wouldn't need to provide most of the outlined requirements above.
How Do You Make A Deposit To Your Domiciliary Account?
After creating the account, it is quite easy to make deposits into the account. You can purchase the Dollar bills (notes) from either the Bureau De Change (BDC) or the Banks and make your deposit into your new account.
You can also get credit cards or the ATM cards for the various accounts and make your withdrawals at the ATM or you may choose to withdraw from the counter and exchange your currency at the Bureau De Change or at any other exchanger at the black market whenever you choose to.
I think you should also read this >>>The real value of all the Dollar denominations to the Naira
Now that is how to successfully make your savings in the United States Dollars instead of the Nigeria Naira. So are you going to start saving Dollars soon? Let's hear from you in the comment section 😊