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 Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
The Chairman of the committee, Mr Adetokunbo Abiru, the senator representing Lagos East, who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the lawful execution of their statutory duties.
However, he noted that the commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.
‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the new legislation seeks to strengthen the independence of the commission by empowering it to make regulatory decisions without undue influence in the country’s insurance sector.
According to him, the bill also enhances the commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability.
This marks yet another move to strengthen the country’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) of 2025 and the industry-wide recapitalisation exercise, which will wrap up by July 31.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
