How inflation and devaluation are killing savers in Nigeria; the Xend Finance solution
It was the global market collapse around the world. Before then, the inflation rate was at a steady 2.0% in most countries. Immediately after the collapse struck, it shot up to 3.8% in the first half of 2008, before coming back down.
In Nigeria, its effect was more pronounced as the inflation rate skyrocketed that year to 11.58% from merely 5.39% the previous year.
And the result? An astronomical increase in the rise of practically everything you can lay your hands on.
That was back then when Nigeria wasn’t considered to be in a recession. For the past couple of years, inflation rates have maintained a relative double-figure annually climbing up this year to a 15.97% increase in the first six months alone.
In all these, some are hit the most — Savers.
Saving in Naira isn’t even an option
Just about a year ago, the world bank published that the inflation rate in Nigeria between 2000 and 2019 was as high as 866.50% with a recession rate higher than sub-Saharan Africa’s average. Meaning, savings in Nigeria isn’t just on life support, it’s literally dead.
Anything less than fixed savings and you can’t even boast of a 5% annual interest.
There’s a beastly scenario that would have been the best option for everyone — a biannual increase of 20-30% in wages. The downside to this is its non-feasibility in an economy like that of Nigeria.
The government and the average private businesses in Nigeria don’t experience such a growth rate, meaning they won’t be able to afford it without going under. Many don’t even offer salary bumps in over 5 years let alone a quarter increase biannually for their staff.
If that card’s out of the game, then it might seem like there’s little or nothing to help the average saver in Nigeria. But that’s not true.
Despite the odds stacked up against your financial assets, there are ways to get ahead of the curve. These are ways that keep your money protected and up against the constant inflation in the country. The following advice might be the best thing you’ve learnt this year and your ticket to an invaluable means of financial protections
How to protect your hard-earned money against inflation and devaluation?
Since naira devalued at an incredibly ridiculous rate, it’s advisable to put one’s money in something that rather than devalue will keep increasing in value and even bring more profits over time.
This is what Xend Finance has been successful in doing.
The CEO of Xend Finance once said “Xend Finance was formed from the need to protect the value of the savings and contributions of individuals who use fiat currencies from devaluations as a result of unstable economies.”
So rather than stay helpless in the face of hyperinflation and watch the currency’s value race down the hill, people can now save and earn interest on their savings with stablecoins.
How does this work?
With Xend Finance, you get to save a portion of your income in stable coins and get a more significant return than any major financial institution can offer, helping you achieve your aim of saving, investing, and beating inflation.
The difference here is the currency you use to save isn’t naira but BUSD — a stable currency pegged to the Dollars at 1:1. So, basically, you’re saving in dollars, preserving the value of your savings. But much more. You are even going to get returns on your investments.
There are three major options for everyone. The flexible or fixed savings, the esusu and the cooperatives.
There remains an unanswered question, however.
If this is just like saving with the dollar, where does the profit come from? And how much can I expect?
Xend Finance intelligently combines different lending protocols to give the savers the very best annual percentage yield. But that’s not all to gain from your savings, you also get to earn some $XEND tokens as more compensation.
With this, we could be looking at a gain averaging 15% which could rise to 30% on some days.