Tips to Exchange Currency from Dollar to Naira and Vice Versa
The Bank of North America, the first national bank of the USA, was established in Philadelphia and in 1785 the dollar was chosen as the monetary unit in the USA. There were various forms of currency used in America previously, when it was a colony and even though paper money was introduced several times, it was easily counterfeited. The monetary system was properly organized after 1792, owing to the Coinage Act, which introduced copper, silver and gold coins. The greenback paper notes were introduced for financing the Civil War in 1861, and to prevent counterfeiting of these notes several techniques were used, including engraved signatures and treasury seals.
Today, all countries have a currency and well established national banks, with paper money that is maintained either by the government, treasury or banking system of the respective country. For individuals who conduct business in two countries and regularly travel between the two, it is necessary to have currencies of both countries.
When an individual travels from Nigeria to USA, they can easily convert Naira to Dollars as it is necessary for an individual entering the country with a legal visa. When applying for a US visa or any country which uses USD as its standard currency, the application fees for visa is to be paid in US dollars, proving that one can afford to travel to the USA and bear the charges for accommodation in this country. Therefore, even before travelling to one’s destination one needs to be in possession of the currency of that country.
Exchanging currency is quite easy, however; there are numerous intermediaries who often dupe ignorant individuals and swindle their hard earned money. The currency exchange rates change every day and one can approach either the Central Bank of Nigeria or other institutions which offer currency exchange option.
The only necessity for exchanging Nigerian currency to US dollars is a valid passport, which acts the identity proof. Following are the steps for exchanging Naira to USD from reliable resources without having to be duped and swindled of one’s hard earned money.
Choose a foreign exchange institution
The first step whenever approaching any institution for currency exchange is to check the current conversion rates, at the official website of the Central Bank of Nigeria. This allows you to compare conversion rates offered by all exchange organizations to choose the one with the most competitive rate. Foreign exchange agents do not offer the same rates as banks, and these rates might be considered disadvantageous so, be prepared and do your homework before approaching such agents. Otherwise, they might take undue advantage of your ignorance.
Central Bank of Nigeria
Once you know the current exchange rates, you can carry the amount you require and exchange it to US dollars. Branches of all major banks are located in all 36 states, so one can approach their closest branch to obtain the desired currency. When at the bank, one simply needs to inquire about the currency exchange services and provide their passport when asked. Once all verifications have been done and the officials ensure everything is in order, you can have your dollar bills in denominations of your choice.
When in the USA if an individual runs out of US dollars and have some Naira with them, they can carry out the exchange without any hassle. The easiest place for exchanging notes is at any international airport, however, they do not offer highly competitive rates of exchange. If one wishes to get a better rate of exchange, they can approach a foreign exchange institution. There are several foreign currency exchange institutions available in this country; however, for choosing the one with the best conversion rates, one must conduct research through their official websites and compare the rates offered.
Conversion of US Dollar to Nigerian Naira
Conversion from dollar to Naira is equally easy and one can approach any currency exchange agency, however, the deals offered are quite expensive and often disadvantageous to the individual exchanging the amount. For those who regularly conduct international business and frequently receive US dollars, the best option is using an international credit card. In USA credit Cards are offered as Master Cards and by loading money into the card in the form of US dollars one can withdraw cash in the form of the Naira, when in Nigeria.
However, one needs to open a bank account for US dollar in Nigeria and then obtain an international CC (credit card). With this card one can obtain currency according to the country in which they are situated, therefore making it the most feasible option. With credit cards the current market exchange rates are applied for all currencies and one also benefit through interbank rate profit. Therefore, possessing a credit card is beneficial when compared to foreign exchange agencies, for individuals who regularly need to convert both forms of currencies.