It is no news that the increase in the dollar exchange rate for Nigerians has hit the nation sending ripples through the economy, impacting citizens, businesses, and the cost of living. This happened due to the unified exchange rates announced by the government in May 2023 and the subsequent series of devaluation of the naira by the Central Bank of Nigeria. With the naira struggling against the dollar, many Nigerians are facing challenges such as reduced purchasing power, inflation, and financial strain. In this article, we’ll explore some of the effects of the dollar increase on individuals and businesses and show you how we at Kaoshi can provide services for survival in these challenging economic times.
How the dollar increase affects the individual
For the average citizen, this turn of event has given rise to higher prices for things that are hinged on the dollar such as imported goods which invariably leads to a reduced standard of living. The rise in cost of essential items such as food, fuel, and healthcare, has many Nigerians facing tough lives to make ends meet. Inflation then in turn reduces the value of both savings and disposable income, leading to a tense financial crisis for households across the country.
In the face of these challenges, one would argue that the most logical and apparent thing would be to hedge your savings against inflation, and we absolutely agree. That is why we at Kaoshi, with the services we provide, can help you convert your naira to USD into your domiciliary account with our hybrid type P2P transaction service. This service also allows you to set your own rates which is in line with CBN’s directive of willing buyer willing seller for currency trades. Our regular P2P service also lets you do other things like pay school fees abroad. So, let’s say Ahmed, who is a Nigerian, wants to pay his sister’s school fees in the UK. With the rise of the dollar, Ahmed would frown but at Kaoshi, Ahmed has a chance to set his own rates and get his transaction completed. All he must do is head over to Kaoshi, sign up, create an account with us and enjoy this amazing service we offer. Start saving in foreign currency to protect your naira.
How the dollar increase affects the businesses
Individuals aren’t just the ones affected, businesses too. The dollar increase also poses challenges for businesses and industries in Nigeria. This includes businesses that are heavily Import-dependent because of the increased prices of goods that are imported and raw materials. Small and medium-sized enterprises (SMEs) are particularly vulnerable, facing challenges such as limited access to foreign exchange and increased competition from cheaper imported products.
Yes, you guessed it right, Kaoshi also has a solution for businesses to ensure they are safe from inflation too. Introducing you to our boutique customer service. Our boutique customers are users who seek foreign currencies in volumes; this in turn ensures they have a percentage discount with us. So, whether it’s USD, GBP, EUR, or CAD, we have them covered with this service. With this, they can swap their naira for the required foreign currency to import their goods, all the while setting their own rates. Wonderful! Becoming a boutique customer has never been easier on Kaoshi, sign up here and start transacting with us.
The increase in the dollar exchange rate poses significant challenges for Nigerians, but with Kaoshi, these challenges can be overcome. By signing up, creating an account with us, and trying out our diverse services designed to cater to your needs, you can rise above the inflation.
