Naira depreciation: 5 strategies to protect your finances.
When a currency like the Naira undergoes depreciation, it signals economic challenges that can impact individuals and businesses alike.
Diversify your investments
Allocating funds into assets denominated in stronger foreign currencies, such as US dollars or euros, can help shield your portfolio from the effects of Naira depreciation.
Hold foreign currency
Foreign currency can provide a direct safeguard against Naira depreciation.
Debt management
If you have debts denominated in foreign currencies, consider prioritizing repayment to avoid escalating costs caused by a weaker Naira.
Hedge Currency Risk
You could also consider employing forward contracts to secure exchange rates for future transactions.
Cut Non-Essential Spending
Begin by conducting a comprehensive review of your budget to identify and
reduce non-essential expenses.