Hidden Secrets of Money – Learn from and Benefit from a Recession

Many intellectuals in America believe the US dollar will soon lose value and go out of existence and that a new financial system will be created. That is an opinion. The understanding behind their belief is logical. However, we in Nigeria know that if the dollar loses value globally, then definitely the Naira will have lost value long before. So it is reasonable for Nigerians to keep some dollars, while they convert other cash to commodities, properties, precious metals and knowledge.

Naira Variation with the US Dollar

Official rate – The rate of the US Dollar to the Naira as set by the Central Bank of Nigeria

Black-market rate – Usually 20% higher than official rate

Since 2015 till date, the Naira to the Dollar has dropped from N197 to N392. From these figures it could easily be deduced than Nigerians have become 10 – 23 % poorer (a rough estimate) than they were in 2015.

At the turn of events sometime between 2014 and 2016, £1 was equal to N550 based on black-market rate, which was the highest as at that time in history. It was at this point I decided to open a £ account. This I did because I felt that this crash will repeat itself in the future. Several days later, the £ stabilized and dropped to N465. It felt like I made a wrong decision. Feelings do not matter when it comes to the financial system. What matters is the history of similar occurrences. Today, in the black-market, £1 = N645 and official rate is going for N505.

Crisis is seasonal. If we are prepared then we flow accordingly. But if we are not then it can teach us a lesson. Sadly, many people do not learn lessons. It is surprising that people seem to act in a manner that seems superstitious. There may be a belief that things will automatically become normal without our actions.  Which is why some do not take action to protect themselves, and time and again, life continues and many are left regretting their situation. The best time to plan and invest in a profitable business is now. The example of forex is just what it is, an example. It is an obvious indicator of how crisis can turn into opportunity, but is by no means the only method. Here is a video which talks about people who took action during a crisis. Some rented parts of their apartment, some began growing avocados…


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