In this article, you will learn how to buy dollars from banks in Nigeria, the things you will need, the current policies, and trends. This information is very useful for oversea travellers, importers, and Nigerian students abroad.
The Current Policy
The Central Bank of Nigeria (CBN) has a new policy on foreign currency; this policy stops Bureau de Change operators in the country from buying dollars from the apex bank. This means that as an individual if you want to purchase dollars in Nigeria, the only option left for you would be to buy from a commercial bank.
Why did the CBN implement this new policy? The CBN claims that BDC operators in the country are partakers of money laundering by becoming middlemen and as such, they’ll no longer be able to purchase dollars directly from the CBN.
The new policy also instructs all licensed commercial banks in Nigeria to set up infrastructures capable of handling the surge of customers that’ll be coming their way since BDCs will no longer officially participate in Nigeria’s foreign exchange market.
However, there are some restrictions to buying dollars from commercial banks and not everyone can purchase dollars from commercial banks. The value of a dollar is so strong that so many developing countries depend on it.
In this guide, you’ll learn about cases that’ll make you eligible to purchase dollars from banks and also how to purchase them. Apart from buying dollars, here are legit ways to earn dollar here in Nigeria for free.
Who can Buy Dollars from Commercial Banks?
Not everyone can walk into a bank and demand dollars and have access to it. You can only buy dollars from the bank if you need to travel abroad for school, business, medical treatment, or as a tourist. If your reason for buying the dollars doesn’t fall into the ones listed above then you’ll not be able to purchase dollars from the bank.
Banks in Nigeria do dispense PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) in Dollars, Europe, or Pounds and the amount you can purchase is capped at a maximum of $4,000 for PTA and $5,000 for BTA or its equivalent in Euro or Pounds per quarter.
How to Buy Dollars from Banks in Nigeria
To be able to buy dollars from Nigerian banks, you must meet the following requirements and provide the following documents:
1. You must not have been paid a total of $4,000 or its equivalent in Pounds or Euro within that quarter
2. PTA or BTA applicants must provide a duly filled Form A, a valid Nigerian or International Passport with a valid visa, and an international return ticket with a travel date not more than 14 days from the date of the BTA or PTA purchase
3. BTA applicants must present a document of Incorporation/Registration as well as a letter of invitation from a business partner abroad
4. BTA or PTA is valid for journeys of a minimum of 5 hours flight time from Nigeria. Also, countries that fall into the West African Region and Cameroon are exempted from BTA or PTA
5. For school fees payment abroad, applicants can come by themselves or send a parent/guardian with a valid BVN. Also, applicants will be required to present their admission letter, payment invoice, a duly completed Form A, and the applicant valid ID card.
Once you meet the requirements and possess the required documents, you’ll be able to buy dollars from Nigerian banks.
Benefits of Buying Dollars from Banks
Buying dollars directly from banks comes with immense benefits. One such benefit is the lower dollar rate. For instance, if you check the dollar to naira bank rate today, you will notice that it is much cheaper than the black market rate. This is quite beneficial for those who have bills to settle in foreign countries as well as importers.
Is it mandatory to own an account with a certain bank before you can buy foreign currency from them?
The answer is NO. You don’t have to open an account with the bank before you can purchase dollars from the bank. Banks are mandated to sell dollars to both account holders as well as walk-in customers. However, the process moves more smoothly when you purchase the dollars from your bank.
What’s the minimum amount of dollars I can buy at the bank?
The minimum amount of dollars you can purchase at the bank is $100 or its equivalent in Euro or Pounds. Depending on your reason, you can buy between $100 and $4,000 or $100 and $5,000.
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