DIFFERENT WAYS TO EXCHANGE NAIRA FOR OTHER CURRENCIES

Whatever the purpose of your travels, whether for business or studies, or even a vacation to whatever country, it is crucial to have the destination country's currency ahead. Now, figuring out how and where to exchange your currency without it being too costly is what we will discuss in this article.

HOW TO EXCHANGE YOUR CURRENCY FOR FOREIGN CURRENCIES 

You can exchange your currencies at/from:

1. Your local bank

Under normal circumstances, this should be the easy and one way to go about currency exchange, but this is different for a country like Nigeria.

The banks do you allow citizens to exchange naira because they buy at a low rate (of ₦ 441.19) and go ahead to sell at the black market (bureau de change at a much higher rate (currently at ₦790) which creates arbitrage opportunities, further worsening the dollar to naira exchange. 

Despite this, there is a way to go about buying from Nigerian Banks; by applying for PTA- Personal Travel Allowance (not more than $4,000 per quarter(3 months)), medical allowance, or educational costs (a maximum of $15,000 per term/semester). The application is made on the centralized Trade Monitoring System (TMS) administered by the Federal Government and the Central Bank of Nigeria. 

On the TMS website, you must sign up using your BVN (for individuals) or TIN (for businesses), after which you fill out the application form and provide all necessary documents (Valid visa, Return ticket, National passport) and your account details. You can receive the exchange by cash or have it transferred to a foreign account. They will communicate with you through email. If your application is accepted, you will go to the bank with your passport to collect your cash.

There is also an option where the bank transfers the educational cost/medical bills directly to the school or hospital.

2. A currency exchange website

Due to the complexity, strictness, and time it takes to apply using the TMS website, Nigerians now use foreign payment platforms to transfer and receive different currencies from and to other countries. 

These platforms include Grey.co, Payoneer, Payday, Leatherback, Wise (Transferwise), etc. They allow naira exchange to other currencies, and some offer virtual cards. This is an easy and fast alternative that can be done anywhere with an internet connection.

3. Bureau De Change (BDC), also known as Black Market

Another way to exchange your naira for the dollar is through BDC. This has been the go-to method of exchange, but the Nigerian Government has started arresting every Bureau De Change; that doesn't mean you still can't find them around. They are found in Airports, markets, post offices, etc.

4. Manual Exchange

This is a peer-to-peer type of exchange, where two people needing dollars and naira exchange the currency using the black market exchange rate. Someone abroad with foreign currency transfers into your foreign account, while you in Nigeria transfer into their naira account. End of transaction. There is little to no difference in using a currency exchange website instead. 

I hope this article has helped shed more light on the different ways to exchange money or pay for services outside Nigeria.