Economy
Saving Your Money in Different Currencies – What are the Plus Sides?
Communication has been one of the most important activities either between individuals, groups of people or even between countries. It was very important for the currency the country was holding because it was the main tool for communication and the same currency holding could make the two countries united or separated.
We can see the same trend nowadays, however, in the 21st century, it is more likely for countries to have common interests, policies, etc while having the same currency. A perfect example, in this case, is the European Union and countries that are having a Euro as their currency, and as a result, their economic dependency is utterly high.
The same way as the English language became universal and it is the language that is most widely used even while you are travelling abroad, the USD has become a universal currency as well.
If English is used by people to communicate with each other, USD is used by political entities, government officials and is often considered to be the tool to conduct negotiations between countries.
Even though the USD is widely used and accepted in many countries, it is not the primary currency in the majority of countries, and because of that, the countries are using the exchange rates to calculate the difference between two currencies.
If we are in our country, we are using our national currency, however, if we are leaving the country, money exchange is one of the most important details to take into account. The USD and EUR exchange is the most popular pair in the world.
Pros and Cons
The existence of different currencies can be considered as positive as well as a negative prism. The USD is the most frequently used currency and many different activities, whether it is for trading, measurement, and most importantly this is the currency that is fixed to gold.
Another most widely spread currency is the Euro which is used in Europe by the member countries of the Single Currency Market, and the advantages that were imposed by the implementation of the single currency are fascinating. People living in Greece can go to Italy without thinking about the additional commissions for converting the currencies, let alone the trade procedures that are way easier.
The fact that those currencies are very popular does not mean that there are no other currencies that are more valuable. GBP and Swiss Pound are great examples in this case. The differences between currencies are very important to take into account, especially when those two countries are having strong economic relations.
The biggest profit and advantage that is taken from the exchange market and currency fluctuation are by the forex brokers and generally, the foreign exchange market.
The whole idea and the purpose of the industry is to trade with the differences between currencies or between possible changes that might happen between currencies. If someone is considering becoming involved in the market, there are several important factors to be considered.
First and foremost, it is important to find a brokerage company (trading without help is quite difficult) that is regulated on the market.
It also depends on where is your current living locations since the regulatory bodies are different from one country to another, for example, there is a lot of difference between CySEC and FCA, the first one being the regulatory body from Cyprus and offers the companies easier terms and conditions, while FCA is the regulatory body in the UK, having one of the most difficult processes to get the license.
Forex market usually observes the changes in the economy, whether it is inflation or recession, as well as the depreciation and appreciation. The system is quite simple and the trader earns profits if the prediction on a certain currency rate was true, however, the market is very vulnerable to many aspects happening not only in the economy but in political or social agenda. This is why sometimes the regulatory bodies are too restrictive when it comes to giving the license to the brokerage companies.
Savings and different currencies
All of us have to work really hard to make our economic conditions better than it is at that certain time. For that, we often save our money for the next few months, years, or even for the future generation.
The meaning of saving and its efficiency was quite vivid when the whole world faced the global COVID pandemic and the economic crisis that was caused by it. Some people were smart enough to take care of their funds for the dark days.
However, some people appeared to be smart, while others appeared to be smarter. Those who live outside of the US or the EU and receive the wages in their national currency often save their money in the USD or EUR.
During the pandemic, all the currencies were depreciated against the USD, which means that the USD got even stronger and those who had saved in their local currency lost more than those who made saving in the USD.
Very clear examples, in this case, are the Eastern or Central European countries, for example, Poland, which is still using the national currency Polish Zloty, and which was depreciated during the global pandemic. People, who had their savings in the local currency lost twice as much as they would have benefited in the case of investing in the USD.
The economic changes are happening all over the world very dynamically and global inflation is still going, especially after years of lockdowns and quarantine.
USD keeps strengthening its positions against all the other currencies and it is still under the question mark whether the other currencies can survive the dollarization or will they lose their value.
The above-mentioned examples have shown that the information is key to any kind of situation and having the proper knowledge about the general trends of the financial, what are the upcoming events that might affect the economic environment or many other details, can help us decide what our future economic steps should be.
It is true that predictions are not always accurate and we also might make the decision that will be not financially beneficial, however, we should not try out the amount that we are building the trust upon and relying ourselves on them. Having the proper saving management strategy and plan is the key to its success.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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