Currency devaluation is a major crisis that citizens of Third World countries have to deal with. Most times it is stoked by inflation, economic crises and political instability.

Historically, Nigeria’s Naira has experienced significant volatility and depreciation, primarily because of the country’s inability to diversify its economy. So Saving your money in Naira is not a wise financial decision as it will erode the value.

For instance, if you had ₦400,000 saved in naira in May 2020, today that money will be worth ₦266,171 according to Stears income calculator. This is why saving your money in Dollars should be a priority for you as a Nigerian.

Saving your money in the United States dollar, aside from being one of the strongest and most traded currencies in the foreign exchange market, offers various benefits for wealth preservation,

Saving in dollars can help protect the value of your Savings from inflation and currency devaluation. The U.S. dollar is widely recognized as a stable global currency, and holding your savings in dollars can provide a relatively safer store of value over time.

In addition, saving in dollars allows you to access a broader range of international investment opportunities. With dollars, you can invest in global financial markets, purchase international assets, or participate in foreign exchange trading.

During periods of economic instability or uncertainty in Nigeria, the value of the Naira can decline rapidly. Saving in dollars can act as a buffer, helping to shield your savings from the negative impacts of local economic downturns. It provides a measure of financial security and stability during challenging times.

Although saving in dollars is possible through a domiciliary account, the bureaucracies, timing and documentation required to open the account are enough to dissuade you. At the moment, no Nigerian bank currently facilitates the exchange of dollars for naira.

Hence, the alternative solution for saving in dollars in Nigeria is using fintech apps. In the following section, we will discuss fintech apps that enable you to save naira in dollars.

Bundle Africa

Bundle Africa, or simply Bundle, is a social payment platform that allows users to save in dollars, trade cryptocurrencies and other currencies. The application backed by Binance operates in Nigeria, Ghana, Uganda, Kenya, UK.

Bundle was founded in 2019 by Yele Bademosi and Emmanuel Babalola. The platform offers 6% interests annually and is easy to use.

Muna

Muna app is a platform that enables users to save in dollars and other wide variety of cryptocurrencies. The value of Muna’s USDN is equivalent to dollars, so users saving their money on Muna are saving in dollars.

Muna was founded in 2020 by Henry Lucky. The app offers user a yearly interest rate as high as 15% and provides 4 locked savings plans and a flexible one.

Piggyvest

Although, typically known as a savings and investments platform, you can save in dollars on Pigyvest’s Flex dollar wallet. The feature enables you save, invest and transfer funds in dollar.

Piggyvest which was founded in 2016 by Somto Ifezue, Odunayo Eweniyi, and Joshua Chibueze. You can save a minimum of $1 and can get a yearly interest of 7% per annum.

Cowrywise

Cowrywise is a mobile platform that allow users to save and invest their money in dollars. The app offers other various investment options asides saving in dollars like cryptocurrencies, Halal savings and mutual funds.

Cowrywise was founded in 2017 by Edward Popoola and Razaq Ahmed. Users of the Cowrywise app can get an earning of up to 8% interests per annum.

Pillow fund

Pillow Fund makes saving and investing easy by allowing you to save in dollar-based assets while earning daily passive income. The app also allows users to invest in cryptocurrencies like Bitcoin, Ethereum and other USD backed coins.

The platform was founded in 2021 by Arindam Roy, Rajath KM, and Kartik Mishra. You can earn up to 14% annual interest on these savings. Also, Pillow has no lock-in periods or maturity dates - the interest is paid out daily.

Bamboo

Here is another non-typical saving app that you can use to save your money in dollars. Through Bamboo’s fixed-iincome dollar-denominated platform, you can save your idle funds without being exposed to the risk of investments.

Bamboo was founded in January 2020 by Richmond Bassey and Yanmo Omorogbe. You can earn up to 8% interest on your dollars savings if you save from 90 days and above.

Closing thoughts

By using these fintech apps, Nigerians can hedge against currency fluctuations, preserve the value of their savings, and diversify their portfolios. As technology continues to evolve, the future of fintech in Nigeria looks promising, offering even more innovative ways to save, invest, and grow wealth in dollars.