Easiest Ways To Access Foreign Currency Without Stress in Nigeria
When you plan to travel out of the country, one of the most important essentials you need is legal tender. Atleast enough to keep you in check for a week or so.
For most people, getting this foreign currency could seem a herculean task especially if it’s your first time. From struggling to get just the right amount that would be enough for a start to worrying about exchange rates and charges to the fear of getting scammed, the process could get a little scary.
Majority of people prefer cash as it seems more readily available when needed but might be forced to go for the cashless option in extreme cases. This will most likely be the case if you’re a Nigerian who is more used to handling cash than e-transactions.
Not to worry, we’ve got you covered as long as you keep reading. There are a couple of options that could help you get foreign currency when wanting to travel abroad, but first let’s look at this;
Factors To Consider When Getting Foreign Currency
How Much is Needed
One of the first things to consider is how much exactly you would need, at least for a start. Trying to get more than necessary might make things more difficult so it’s advisable to make some calculations and decide how much exactly is needed.
How Much Currency is at Hand
This is another factor to consider as you can only get the equivalent of the amount you currently have in Naira. Therefore, a request will have to be made in line with the amount you have at hand.
Day-to-Day Purchases
You will definitely need to make some purchases once you arrive at your desired country. Therein arises the need to look out for the expenses you would be incurring and include this in your decision of how much you need.
Exchange Rates/Fees
Some of the means of getting foreign currency come with higher exchange rates than others. While you want to get what you need, you also want to avoid unnecessary/exorbitant fees and charges.
For instance, getting foreign currency from a bureau de change outlet or at the airport might cost more than getting it from your regular bank branch. So try as much as possible to use the cheapest means available for this.
Availability
You will also have to take into consideration the availability of foreign currency at the time that you would be needing it. Sometimes, it might not be readily available, so you might need to request ahead of time to ensure it is ready at the time you need it.
Time Frame
This could also be a little challenge especially if you’re ordering online. Certain procedures in processing it plus the time it would finally get delivered to you could take some time. This will naturally require that you order ahead of time in order to beat any of these unforeseen circumstances and be on the safe side.
Avoidance of Scams
This is a huge scare for everyone as nobody wants to get scammed in this area. You always want to be sure you are dealing with the right sources and not just any random person or outfit. Asking questions, visiting your bank to make enquiries, getting info online and so on are part of the ways you can gather information on legitimate sources to engage in getting foreign currency.
Having considered these, let’s now move on to the various means of getting your foreign currency.
Means to Get Legal Tender for Your Travel Destination
Having considered these factors outlined, let’s now move on to the various ways of getting your foreign currency;
Visiting Your Local Bank Branch
This is one of the most common options to use. Banks usually have a stock of foreign currency and you can always visit your bank’s branch to request for an equivalent of the amount you have in Naira. As expected, they have their exchange rates and charges, so all you have to do is know and understand the conversion rate in order to determine how much you can get.
Another option under the banking window is getting funds from one’s relatives or friends abroad. With nothing more than a code or two (which would be sent by the person abroad) and sometimes, a domiciliary account, foreign funds could be sent to you here in Nigeria. Upon presentation of the codes as sent, these funds can be collected at your branch through any of the available platforms e.g SendWave, WorldRemit, Boss Revolution e.t.c.
Bureau de Change
This is an establishment in which customers can exchange foreign currency. It is an office where you can change the currency of one country for that of another.
Derived from French, which means “office of exchange”, bureau de change is a business which, in competition with other similar businesses, makes its profit by buying foreign currency and then selling the same currency at a higher exchange rate. It may also charge a commission or fee on the purchase or sale.
This is another option in getting your foreign currency though it comes with higher exchange rates since it’s more of a personal business.
From a Forex Dealer or Your Travel Agent
A Forex dealer is a firm or individual who buys foreign exchange from one party and then sells it to another party. The dealer makes the difference between the buying and selling prices, or the spread. Since they are already into the business of foreign exchange i.e exchanging national currencies, this is another good option.
Your travel agent could also help out here as they would most likely have access to sources from which you can buy foreign currency.
Ordering Online
There are several online options to getting foreign currency. Here, getting it done is just a click away. Many banks provide online forex services. To get foreign currency, you would need to visit the bank’s website and select the internet banking option. You can order and have the foreign currency delivered to you at your doorstep. Picking it up at a branch is also another option.
These online sites will also have an exchange rate they work with; so you need to decide the amount of foreign currency you need and match that with what you currently have. Next would be to select the currency you want it converted into. The site will display the exchange rate and currency conversion fee. Do pay attention to these as they will help you know exactly how much of the currency you can get.
Another important detail is that ordering foreign currency online will require you to do so at least three days before hand due to unforeseen delays or circumstances. If you need the currency in a shorter time, doing it offline would be better.
Getting it at The Airport
Just like at banks, you can also get foreign currency at the airport. This should be your last option, however, because you would have to pay higher fees and currency conversion charges.
Vital Note
Always remember to compare currency exchange rates and/or conversion charges under the different options before making a decision.
Also, before planning your next international trip, think about how you want to pay for everyday purchases. Understanding foreign transaction fees, currency exchange fees, ATM withdrawal limits and other factors affecting the use of foreign currency could also help you save some money and time and enjoy your stay altogether.
Frequently Asked Questions
What is the best place to exchange foreign currency?
Banks and credit unions are generally the best places to exchange currency, with reasonable exchange rates and the lowest fees.
What is the function of bureau de change in Nigeria?
Bureau De Change (BDC) is a private business licensed by the central bank of a country (in this case, Nigeria) to render the service of buying and selling foreign currencies to the public.
The licence of a Bureau De Change in Nigeria shall confer on the holder the rights and privileges of an approved buyer of foreign exchange in keeping with the standard of the financial services industry and in order to generate and maintain public confidence in the sub-sector.
Do Foreign Banks Accept US Dollars?
Many major international banks will accept U.S. dollars and give you the local currency in exchange. Some smaller banks you encounter during your travels may not be equipped to accept USD, so stick with bank names you recognize.
Do Banks in the US Accept Foreign Currency?
Some banks may let you exchange unspent foreign currency you bring back to the U.S., but you generally won’t be able to deposit foreign money into your checking or savings account. Instead, you’ll have to exchange foreign currency for dollars before making a deposit.
Is cash frequently used abroad?
You’ll discover that most foreigners rely on their credit or debit cards to make purchases as much as cash.
However, cash remains the most frequently used means of payment. There are times when you’ll need to pay cash; for instance, if you’re buying a drink at a small bar or paying for taxis or giving restaurant tips.
Conclusion
Now that you’ve gotten acquainted with the various means you can get foreign currency and the factors to consider while doing that, we hope it’ll make things easier for you.
In all, ensure careful carriage and wise spending as well, as you wouldn’t want to run out of cash too soon.
Enjoy your trip!