The Foreign exchange market has been a growing niche in Nigeria lately. Since the oil prices have been failing countries, currency exchange for other foreign currencies have been on the rise and the currency conversion has been preventing many importers from traveling abroad.
Getting the best foreign exchange rates for hard currency transactions may look like an easy task to handle, but you need to know how you can find the best foreign exchange rates.
Sometimes, it could take a lot of your time. Of course, you can always visit your bank for that or the closest money changer in your area, but the real question is “how do you find the best foreign exchange rates” each time you need to travel abroad to purchase your goods? Remember, hundred naira difference can make a big difference when you are thinking about making a big volume transaction outside the country.
– You may have to ask around, shop around, and surf around a lot more than expected before you can really find the best foreign exchange rate available.
– Don’t forget too that you can always have the option to give up the task when the current rates of exchange are extremely high (meaning if the rates are higher than what you bought the currency). When the rates are way too high and you’re not that much in a rush, then you can forgo the task until better market rates are available. This is where the exchange rate calculator comes handy with you, can always check around the rates every now and then.
Follow this tips on how to get it for hard currency transactions:
– Get the latest interbank rates out of your bank or from the online bank.
– Making use of an online exchange rate calculator makes it easy with a conversion and compares it with the inter-bank rates. There should not be much difference between the two, but always pick the one with best foreign exchange rate to your reference rate.
– Airports, train stations, and ferries offer convenience, but usually have slightly higher foreign exchange rates. Another option is to check out the airport rates online before you decide to purchase the local currency for a good rate plan – Keep in mind, this is an airport, which can be convenient for you, but the price is always higher.
– By using this as the base of reference, get quotations from various money changers. Although, do not expect to get exactly the same exchange rate from the money changers. The interbank rates and black market rates are for wholesale transactions (usually in millions of Naira) and the money changer rates are retail transactions.
Besides, money changers would normally jack-up the rate with a small amount of profit to pay for their operating costs so they will provide you with different quotations. Use the interbank rate for reference only, but make sure the difference it has together with the money changer’s quotation must be in the range of 5% to 10% only.
-It’s not recommended to make hard currency transactions online unless it’s through a bank. But if you are planning doing an online transaction with money changers, make sure you will be dealing with a reputable company. You can check its background online or even check around from friends. Make sure that the transfer processes of the money transfer are secured.
-There is a need for you to be aware of the current amounts of the exchange rates in comparison to their rates in the past. Currency exchange rates fluctuate rather rapidly every day. What could possibly be higher today could actually be lower a couple of days from now. So, unless you actually need the money at that time, postpone the transaction with other more opportune time in the future when exchange rate levels are in your favor.