Many Nigerians seek opportunities abroad for work, education, or a better quality of life. Whether relocating permanently or travelling temporarily, managing currency exchange effectively is important.
Poor planning can lead to financial loss. Understanding how to convert naira to dollars or other foreign currencies is essential.
Read also: Top 10 African countries with the easiest foreign currency access
Here are 10 currency tips for Nigerians planning to travel
1. Understand exchange rates
Exchange rates fluctuate due to market forces. The official rate from the Central Bank of Nigeria (CBN) often differs from the parallel market rate. Many travellers rely on the black market for better rates, but it carries risks. It is important to monitor exchange rate trends before making transactions.
2. Choose the right exchange method
There are multiple ways to exchange naira for foreign currency:
- Banks and Official Channels: Banks provide forex services, but access can be limited due to regulatory restrictions.
- Bureau de Change (BDC): These offer more flexible rates but may require bargaining.
- Parallel Market: This provides quicker transactions but comes with security risks and fluctuating rates.
- Online Platforms: Some fintech apps offer foreign exchange services, but they may have restrictions on amounts and transaction times.
Read also: 15 worst African currencies against dollar
3. Open a domiciliary account
A domiciliary account allows Nigerians to receive and save foreign currency. It is useful for international transactions and provides better control over forex needs. Funding the account requires sourcing dollars through legal means. Some banks allow deposits from international transfers, while others require cash deposits.
4. Get a dollar card
Many Nigerian banks offer prepaid dollar cards for international transactions. These cards help travellers avoid restrictions on naira debit cards abroad. Some fintech companies also provide virtual dollar cards, which can be used for online payments.
5. Plan to avoid last-minute currency issues
Waiting until departure to source forex can be costly. Exchange rates can rise unexpectedly, affecting travel budgets. It is advisable to buy foreign currency in small amounts over time rather than in bulk at the last minute.
Read also: Five countries that do not have their own currency
6. Understand spending limits on Nigerian cards
Most Nigerian banks impose spending limits on naira cards for international transactions. These limits can be restrictive, making it necessary to have alternative payment options such as cash, domiciliary accounts, or fintech solutions.
7. Declare large sums at the airport if necessary
For those travelling with large amounts of cash, some countries require declaration at the border. Failure to declare the amount could lead to confiscation or fines. It is important to check the destination country’s cash declaration policies.
8. Avoid forex scams
Many people fall victim to forex scams when trying to exchange money. Fake currency dealers often operate online and in physical locations. To avoid losing money, it is best to use trusted exchange channels and verify the authenticity of forex dealers.
Read also: Beyond Naira: Foreign currencies shaping Nigerian businesses
9. Consider alternative payment methods
Besides cash and bank transactions, alternative payment methods such as PayPal, Wise, and cryptocurrency can help with international transactions. However, each option has its fees and restrictions that need to be considered.
10. Stay updated on currency policies
Government policies on forex can change without notice. Keeping track of CBN policies, bank regulations, and international money transfer rules can prevent surprises. Joining forex discussion groups or following financial news can help travellers stay informed.
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