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
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn