Welcome, dear readers! Today, we dive into the exciting world of foreign exchange and explore the ongoing devaluation of the naira against the British pound. In this blog post, we'll discuss recent developments in the foreign exchange market and highlight an investment opportunity that allows you to leverage the strength of the pound.

The Devaluation of the Naira:

Following the Central Bank of Nigeria's announcement of a unified exchange rate on June 14, 2023, the naira experienced a significant decline on the official market, falling by 41% to N842. Presently, the currency hovers around N1,019 on the official market and approximately N1,040 on the parallel market. For years, the artificial exchange rate maintained by the CBN concealed the true value of the local currency. However, recent monetary policy changes have brought the official rate closer to the levels seen in the parallel market.

Factors Influencing the Naira:

While the unified exchange rate played a crucial role in the naira's devaluation, other factors contribute to the downward pressure on the currency. One key factor is the substantial demand for sterling driven by Nigerian students studying in the UK. Over the years, a significant number of Nigerian students have been admitted to UK universities, resulting in an estimated annual contribution of £1.9 billion by these students and their dependents. This demand for sterling intensifies the pressure on the naira. Additionally, the rising strength of the pound has added to the challenges faced by the naira. The Bank of England (BoE) has taken a hawkish stance on interest rates. The UK's stubborn inflation figures are proving to be far more problematic than expected, so the bank has been raising interest rates since December 2021, with base rates now at a 14-year high of 5%. Analysts expect this trend to continue into 2024. By contrast, the US Federal Reserve is expected to cut interest rates as inflation heads below 3%. Consequently, portfolio investors seeking higher yields have flocked to pound-denominated assets, leading to the appreciation of the pound against other major currencies, including the naira.

The Investment Opportunity with PariVest:

In light of the challenges faced by local currencies against the strength of the pound, Parivest presents an exciting investment opportunity. With PariVest, you can invest in pound-denominated assets, primarily real estate in naira, and earn your returns in pounds. This investment avenue allows you to tap into the potential of the UK real estate market while capitalizing on the strength of the pound. Take advantage of this incredible opportunity to grow wealth and secure your financial future. Choose an investment plan today!

Food for Thought! If you had invested in our 2-year sterling plan back in May 2022, your portfolio would have returned over 50%! Want to know more? Drop a comment below or send an email to [email protected].