How To Buy And Sell Dollars In Nigeria-In Nigeria, buying and trading dollars have been a common activity for more than 40 years. Nigerians engage in the activity of purchasing and selling dollars for a variety of reasons. Some do it to get wealthy, while others leave the nation. There are various hazards associated with this trading as it becomes more popular. However, these hazards may be reduced if you know what you’re doing. This article will provide you with all the details you want on how to buy and sell dollars in Nigeria.
How To Buy And Sell Dollars In Nigeria
How To Buy The Dollar In Nigeria
In Nigeria, the US Dollar is traded on a black currency market. To buy one, you’ll have to pay a premium on the purchase price, which is usually above the official exchange rate. The process of buying a dollar in Nigeria is simple. You’ll need to find a seller with access to American dollars and decide on a mutually agreed upon price before exchanging the cash for the currency.
When it comes to finding sellers with access to American dollars, there are many avenues. One way to find sellers with access to American dollars is through acquaintances or friends who work in places that deal with some international trade like banks or import/export companies. A second way is by going online and browsing some sites that offer foreign exchange services like KiakiaFX.
How To Sell The Dollar In Nigeria
A particular amount of naira may be exchanged for a dollar in Nigeria. Depending on the value of the naira, the dollar price fluctuates sometimes. It’s crucial to remember that purchasing money from other sources is prohibited. You must have a foreign account or be a Nigerian corporation with a foreign account to do this. In Nigeria, there are two methods to sell your dollars:
- You may go to any commercial bank if you have any extra cash from your international journey. They will provide you with a receipt for the money you took out of the ATM and convert it to naira using their official exchange rate, which is never higher than market value.
- You may also go to one of the numerous currency bureaus in Lagos or Abuja if you want to earn more money than the commercial bank would. Lekki and Victoria Island both have a large number of currency bureaus. However, they further demand a fee of up to 30% on top of what commercial banks like Zenith Bank, First Bank, and Union Bank, among others, provide. Depending on the situation, these fees may be for paperwork and shipping costs.
How Can I Buy Dollars From BDC?
BDCs are one of the sectors that assist the central bank in implementing policies through their involvement in the foreign exchange market. As a result, they follow the regulating body’s rules while doing business. When CBN sells dollars, pounds, or euros to the BDC, they only sell to people who need them; they are not intended for black market dealers on Lagos’ streets.
If you come under the list of those who want dollars for the most necessary service overseas, you may also purchase dollars through your bank in addition to the BDC. According to a CBN communiqué, “Foreign Exchange availability will be committed to strategic imports or service commitments that are a priority.” As was previously mentioned, CBN no longer sells to BDCs; instead, as of July 28, when the new FX policy took effect, you must go into a bank.
Apps To Buy And Sell Dollars In Nigeria
When Bitcoin’s value rises, you may sell dollars to cryptocurrency traders at a highly lucrative rate if you’re a trader of cryptocurrencies, particularly Bitcoin. If you want to start selling bitcoin, you should start by purchasing it from those who only sell it in small amounts to sell it in bulk. Additionally, there are options for you to start your company using free bitcoin earned online.
At the moment, 1 Bitcoin is worth more than N9,014,775.48. If we split the two figures, we may estimate that 389 bitcoins have been sold recently. Therefore, if you want to sell bitcoin for $500, you must do it at the current rate.
You may start selling dollars to Nigerian internet firms by sending them money at the current exchange rate or a black market rate if your PayPal account is fully filled with dollars. Whatever method suits you. To enable this, you must first open a PayPal Business account. You may send and receive money online after setting up the business account. Purchase money from individuals who run global web companies, exchange it for naira and then exchange it back at the best exchange rate. You are building your corporation in this manner.
You may deposit your naira into KiakiaFX, a highly secure automated online payment system, and the dollar equivalent will be put into your domiciliary account. It is a black market bureau de change; you may execute the transaction on this website without searching for Aboki operators in your city.
The platform is incredibly effective and secure. They will show you the amount you will get right away when you choose the amount you wish to adjust. Send money with a credit or debit card, a bank transfer, or both. As soon as they receive your cash, they quickly process your payment. Your Dashboard allows you to keep track of transactions, and they will notify you as soon as your recipient gets the money. This website is beneficial when using a bureau de change in an emergency or on the weekends when most employees aren’t working.
Similar to PayPal, Zelle is an online payment system that lets users send and receive money. Additionally, it does not accept accounts from Nigeria, exactly as PayPal. But for those who have succeeded in opening an account, you may assist them in making withdrawals by purchasing Zelle app money and exchanging them for naira at a profit.
What Are The Dangers Of Purchasing And Selling Dollars In Nigeria?
The dangers of purchasing and selling dollars in Nigeria include exchange rate volatility, pricing changes, and fraud. Price alterations are the first danger. Up to 10% changes in the dollar value occur daily. This is due to the absence of a standard pricing system for the dollar in Nigeria. As a result, if you’re not prepared to sell your money right away, it’s impossible to predict how much it will be worth tomorrow. Be mindful of this before making a buy or sell since the value of the dollar and other foreign currencies is subject to change at any moment.
Fraud is yet another danger. Someone who is more knowledgeable about the transaction than you is likely to attempt to take advantage of you by exchanging fake money or offering you a terrible bargain. Before choosing to exchange dollars with someone due to this danger, it’s vital to discover someone with a lot of knowledge who can assist with these things.
When exchanging dollars in Nigeria, there are additional risks besides these related to currency rates. When you buy or sell anything, you should constantly be aware of the true cost of your money since various stores will have varying exchange rates based on what they buy and sell.
Reducing The Dangers Of Selling And Purchasing Dollars In Nigeria
In Nigeria, it is dangerous to buy and sell dollars. You may be purchasing false or counterfeit money, or you might be caught by the authorities while attempting to leave the country without permission. You may lessen these dangers, however, by taking basic safety measures.
First, before buying dollars from an unknown source, always verify their legitimacy. Rub your fingertips over the security strip that runs through the banknote to do this. If the bill feels scratchy, it is a fake. Holding a bill up to a light and examining the watermark is another approach to determine if it is a fake. A counterfeit dollar bill’s picture won’t be as clear as a genuine one since it was made on less expensive paper.
Getting detained for unlawful currency trading methods, such as attempting to leave the country with more than $10,000 in cash, is another danger associated with buying and selling dollars in Nigeria. When exchanging money, never purchase or sell less than $10,000 at a time – not more than $10,000 but never less than $5 to $1,000, depending on how much you need to exchange at any one moment so that you don’t exceed what is permitted by Nigerian law and get a fine.
Frequently Asked Questions
Nigerians may now apply for Form A and virtually purchase dollars online. Form A was automated by the CBN, the national bank of Nigeria, to make conducting business easier. People may therefore apply to acquire dollars from the convenience of their homes and workplaces.
- Create a blog
- Affiliate marketing
- Start Amazon KDP
- Start YouTube Channel
In Nigeria, you cannot purchase a dollar through GTBank. However, you can accept foreign currency into your GTBank account from overseas.
Although buying forex is the most common method to invest in currencies, investors may also purchase mutual funds, ETFs, or ETNs. Investing in international firms exposes investors to foreign exchange rates.
Many traders agree that when the market is most active, when liquidity and volatility are at their highest, it is often the most excellent time to buy and sell currencies.