Travellers’ Guide to Beating Exchange Rate Volatility

 Omolabake Fasogbon

International travellers often face the challenge of currency exchange, especially when time is of the essence.  Factors such as fluctuating exchange rates, and hidden and varying exchange rate methods humble even the smartest currency buyer who most times are forced to alter their initial budget, due to losses. 

However, these factors being influenced by circumstances, including economic indicators, political stability, central bank policies, and market speculation can still be harnessed favourably, depending on how parties play their game, experts reckon. 

The funds available to a traveller are just as important as his travel purpose, while fulfilling this purpose. Getting a good exchange deal thus comes quite handy.

Managing Director of 171 Bureau De Change Limited, (BDC) Mr. Jamiu Amusa, noted that many travellers miss the opportunity to get good exchange rate due to ignorance. 

For this, he stressed a considerable knowledge of the forex market, including Bureau de Change (BDC) platforms and local banks.

He stated that understanding the market would enable travellers plan properly and prepare for market fluctuations. 

“This will not only help travellers navigate shocks but also secure budget and have a pleasurable travel experience”.

He stated however that from experience travellers severally overlook studying the exchange rate ahead of trips, causing them not to get attractive rates.

“This is in addition to not engaging trusted sources for money exchange, thus, falling for scam; exchanging too much cash as well as doing late hour exchange at the airport.  Off course, airport currency exchangers offer higher and poorer rates compared to the BDCs”, he asserted. 

He maintained that BDCs remain the best plug for travellers for multiple reasons, mostly to get value and meet up with financial target. 

According to him, by dealing with BDCs, one can be sure of a competitive exchange rate, transparent and secured transactions. 

“Moreover, you can trust them for reliable and seamless advisory support up to travel insurance and other related travel advices. It is not just a one stop shop for all currency exchange, you can also be sure of the most favourable terms through offered commission,” he said.

“Before you engage a BDC, be sure it is duly licenced by the Central Bank of Nigeria (CBN) and check the validity of the licence. Importantly too, go with operator that has a good reputation and track record of excellent service. 

“You can check reviews and ratings, alternatively, travellers can consult locals or fellow travelers for recommendations. It is also safer and wiser to engage trusted operator within your area or accessible location,” he advised. 

On getting abroad, especially as a new comer, the boss counselled against lavish spending to ensure a stable start and financial stability. 

He emphasised setting priorities as a must, in addition to budgeting for necessities. 

He said, “Having made exchange for initial transactions, it is wiser to use credit card for further transactions. In doing transactions, it is economical to use local currency to avoid unfavorable exchange rates. This is not time for profligacy,” he maintained.

“Avoid luxury and settle for cheap alternatives. Also, track your budget to ensure that you are not derailing. There are several apps to do this depending on the host country. Also, take note of exchange rate so you can adjust your spending to align with unfavorable fluctuations. Lastly, keep some fund for contingencies,” he said. 

As per when traveller is stable enough to send money to loved ones back home, Amusa reckoned that it is financially viable to engage a cross-border payment service with a comparative advantage in destination country for cost effectiveness. 

“For Nigerians or Africans in diaspora, organisation like Broad Money Transfer is a convenient option given their connection and understanding of the African market”.