In less than a decade, the Nigerian currency witnessed a dramatic depreciation from 160 Naira to 470 Naira for a Dollar in the parallel market. This dramatic depreciation has made travel outside the country almost impossible for many Nigerians.
When I talk about travel plans, people often ask me how I travel, when the cost of obtaining Foreign Exchange (Forex) is outrageous. The truth is, the Parallel Market is not where I go to get Forex for travel. I go to a much cheaper market, which is legal, safe and easy to access.
Here are the five simple steps to obtain cheap Forex for travel:
1. Decide on Holiday Destination
Your holiday destination will often determine the currency you want. If you’re going to the United States or a country where the US Dollar is widely accepted, you might opt for the US Dollar, and if you’re going to the United Kingdom, you might want British Pounds. My currency of preference is the USD because it is relatively cheaper and widely accepted or easily exchanged in most countries.
2. Get a Visa
If you’re a Nigerian Passport Holder, you will most likely need a visa to travel outside the country. According to Passport Index, Nigerian Passport holders require a visa to visit 154 countries. To access cheap Forex for travel, all travellers must present evidence that they have a Visa to travel to their chosen holiday destination.
3. Buy a Ticket
This step is vital because your travel date determines when you can apply for the Forex. According to the rules, the application must be made not earlier than two weeks before the intended date of travel. You should know that due diligence is carried out on every application, to confirm that the ticket is valid for travel. If the ticket is not validated, the application may fail.
4. Apply for Forex
With copies your Passport, Visa, Ticket, and of course, enough funds in your account, go to your bank and ask for a Personal Travel Allowance (PTA) Form. I find that Customer Care Agents are always happy to guide applicants on how to fill the form.
At this point, you may not know the actual exchange rate for your preferred currency, but you’ll have an idea from rates of previous days. What you can be sure of though, is that you’ll get a rate far below the Parallel Market rate. For example, PTA rate for a Dollar was about 383, while a Dollar was about 480 in the Parallel Market in January 2021. That’s a saving of about a hundred Naira on each Dollar!
5. Receive Forex
Once the request is approved, the bank will let you know, and you can pick your PTA. Note that each traveller may purchase a maximum of four thousand dollars (or its equivalent in other currencies), per quarter.
When you get Forex from the bank, you can be sure that you’re getting the best price, the bills are not counterfeit, and you’re not dealing with proceeds of illegal activities like money laundering or kidnap for ransom.
So, why are you still here? Start making your travel plans right now!
