How to Beat the N1,000/£1 Exchange Rate Scam in Nigeria

If you’re looking for UK Pounds in Nigeria, you might be shocked by the high exchange rate on the black market.

For the past five days, the naira has been trading at over N1,000 to £1, making it very expensive to buy or send money to the UK.

In this blog post, we’ll explain why the naira is losing value against the UK Pounds, and how you can save money on your transactions.

Why is the Naira Depreciating Against the UK Pounds?

There are several factors that are affecting the exchange rate between the naira and the UK Pounds. Some of them are:

– High demand for UK Pounds from Nigerians who want to emigrate to the UK or send money to their relatives there.

– Low supply of UK Pounds from foreign investors who are reluctant to invest in Nigeria due to economic and security challenges.

– Partial float of the naira by the Central Bank of Nigeria (CBN), which means that the official exchange rate is determined by market forces rather than fixed by the government.

-Weakness of the US dollar, which is cross-sold for the UK Pounds on the black market.

According to Nairametrics, a financial news website, the naira has depreciated by 5% against the UK Pounds in July 2023 alone.

On July 10th, 2023, the average black market rate was N1,025/£1, while the official CBN rate was N1,008/£1.

This means that there is a huge gap of N17 between the two rates, which creates an opportunity for arbitrage and speculation.

RELATED CONTENT: Black Market Dollar to Naira Exchange Rate Today July 10, 2023

What is the Scam About?

The scam is about the huge gap between the official and black market exchange rates for UK Pounds in Nigeria, which creates an opportunity for arbitrage and speculation.

Some unscrupulous people may take advantage of this situation and offer you lower rates or fake notes when you buy or send UK Pounds.

How to Save Money on UK Pounds in Nigeria

If you need to buy or send UK Pounds in Nigeria, you might be wondering how to get the best deal and avoid losing money on the exchange rate. Here are some tips that can help you:

– Compare different sources of UK Pounds before you buy or sell: You can use online platforms like AbokiFX or Nairametrics to check the latest black market rates, and compare them with the official CBN rates and other sources like banks, bureaux de change, and online money transfer services.

– Use a reputable and licensed money transfer service that offers competitive rates and low fees: Some of the popular options include TransferWise, WorldRemit, Azimo, and Remitly. These services allow you to send money online from your bank account or debit card to a bank account or mobile wallet in the UK. They also offer transparent exchange rates that are close to the mid-market rate, which is the fairest rate you can get.

– Avoid using cash or informal channels to buy or send UK Pounds: Cash transactions are risky and prone to fraud, theft, or counterfeit notes. Informal channels like hawala or friends and family may offer lower rates, but they are also unregulated and unreliable. You may end up losing your money or facing legal consequences if you use these methods.

– Plan ahead and avoid last-minute transactions: If you know that you need to buy or send UK Pounds in advance, you can monitor the exchange rate trends and choose the best time to make your transaction. You can also use tools like rate alerts or forward contracts to lock in a favorable rate before it changes.

Conclusion

The exchange rate between the naira and the UK Pounds is volatile and unpredictable. However, by following these tips, you can save money on your transactions and avoid paying more than you need to. Remember to always compare different sources of UK Pounds, use a reliable money transfer service, avoid cash or informal channels, and plan ahead. This way, you can get more value for your money and achieve your financial goals.

Source: Nairametrics