Dear Nairalanders,

Please I have a question. If I have to transact with my naira mastercard to pay in dollars, at what exchange rate will I be debited? The official exchange rate (198 naira/$1) or the parallel market exchange rate (287 naira/$1)?

Thank you as I await your prompt responses.

Boldstar:
Dear Nairalanders,

Please I have a question. If I have to transact with my naira mastercard to pay in dollars, at what exchange rate will I be debited? The official exchange rate (198 naira/$1) or the parallel market exchange rate (287 naira/$1)?

Thank you as I await your prompt responses.

you can't use your mastercard to pay in dollars but if its allowed then you will be charge the official rate

Raiders:
you can't use your mastercard to pay in dollars but if its allowed then you will be charge the official rate

Have you not seen all the threads in the Business forum of people complaining that they were charged black market rates by banks when making foreign payments? GTBank, UBA, all of them.

stagger:


Have you not seen all the threads in the Business forum of people complaining that they were charged black market rates by banks when making foreign payments? GTBank, UBA, all of them.

that means the banks are selfish. I'm not in Nigeria sha but I was charge the official rate when I withdrew money from my Nigeria account 13 months in US. I don't have any money in the account anymore so I don't really know. But I do know they usually charge the official rate last yr

Raiders:
that means the banks are selfish. I'm not in Nigeria sha but I was charge the official rate when I withdrew money from my Nigeria account 13 months in US. I don't have any money in the account anymore so I don't really know. But I do know they usually charge the official rate last yr

Well, I am telling you what was obtainable just before the CBN banned foreign payments with Naira MasterCards entirely.

a) You receive Moneygram or Western Union: you MUST receive the cash in Naira at the official rate. In other words, the banks buy it off you at maybe N198 to $1.
b) You use your foreign cards on a Nigerian ATM. You are paid official rate or even less (Payoneer is about 193). So the banks again, have earned dollars on the cheap as the foreign banks must settle the transaction in USD.

Now it gets interesting.

a) You make a PayPal payment from Nigeria. You are billed at N283 (what UBA charged me last week of December.
b) You make a cross-border payment on a POS or website. You are billed at black market rate.

So when the Nigerian banks now have to settle the foreign merchants, they do so using your acquired dollars they got at official rate and sold to you at black market rate. So the banks are making a killing off the differential.

Until a banker comes here to counter what I have said, this is my understanding of the situation.

stagger:


Well, I am telling you what was obtainable just before the CBN banned foreign payments with Naira MasterCards entirely.

a) You receive Moneygram or Western Union: you MUST receive the cash in Naira at the official rate. In other words, the banks buy it off you at maybe N198 to $1.
b) You use your foreign cards on a Nigerian ATM. You are paid official rate or even less (Payoneer is about 193). So the banks again, have earned dollars on the cheap as the foreign banks must settle the transaction in USD.

Now it gets interesting.

a) You make a PayPal payment from Nigeria. You are billed at N283 (what UBA charged me last week of December.
b) You make a cross-border payment on a POS or website. You are billed at black market rate.

So when the Nigerian banks now have to settle the foreign merchants, they do so using your acquired dollars they got at official rate and sold to you at black market rate. So the banks are making a killing off the differential.

Until a banker comes here to counter what I have said, this is my understanding of the situation.

well banks are out to make money and I believe they are to be blame for our exchange rate problem. Also I won't risk using my Wells Fargo bank Atm card in a Nigeria atm machine if I visit Nigeria. Its more profitable to withdraw all the money here and convert it when I get to Nigeria. I am really surprise that western union convert at official rate so I think its better to get paid in dollars or don't western union pay in dollars anymore? I would also want to know the rate western union charges if someone want to send money from Nigeria to oversea

Raiders:
well banks are out to make money and I believe they are to be blame for our exchange rate problem. Also I won't risk using my Wells Fargo bank Atm card in a Nigeria atm machine if I visit Nigeria. Its more profitable to withdraw all the money here and convert it when I get to Nigeria. I am really surprise that western union convert at official rate so I think its better to get paid in dollars or don't western union pay in dollars anymore? I would also want to know the rate western union charges if someone want to send money from Nigeria to oversea

The CBN had stopped payment of Western Union in USD about 2 years ago or so. You are better served carrying your raw dollars with you down.

Raiders:
well banks are out to make money and I believe they are to be blame for our exchange rate problem. Also I won't risk using my Wells Fargo bank Atm card in a Nigeria atm machine if I visit Nigeria. Its more profitable to withdraw all the money here and convert it when I get to Nigeria. I am really surprise that western union convert at official rate so I think its better to get paid in dollars or don't western union pay in dollars anymore? I would also want to know the rate western union charges if someone want to send money from Nigeria to oversea

Well, banks claimed that they don't determine the exchange rate for outward Western Union transfer from Nigeria but that it is done at official rate as given by WU.

Thank you Raiders and Stagger.

I understand the situation better now. The banks will exchange dollar for naira at the parallel market rate. Well, we're being fleeced.

Boldstar:
Thank you Raiders and Stagger.

I understand the situation better now. The banks will exchange dollar for naira at the parallel market rate. Well, we're being fleeced.

The banks are sourcing forex outside of the official market to finance their obligations to the card companies(visa,mastercard).You have a choice, use the cards and pay at the black market rate or avoid using the cards for transactions denominated in foreign currency. We keep on complaining but we are not ready to make any sacrifices.

CHANCEMAN:


The banks are sourcing forex outside of the official market to finance their obligations to the card companies(visa,mastercard).You have a choice, use the cards and pay at the black market rate or avoid using the cards for transactions denominated in foreign currency. We keep on complaining but we are not ready to make any sacrifices.

you have a point but that rate is killing.

stagger:


Well, I am telling you what was obtainable just before the CBN banned foreign payments with Naira MasterCards entirely.

a) You receive Moneygram or Western Union: you MUST receive the cash in Naira at the official rate. In other words, the banks buy it off you at maybe N198 to $1.
b) You use your foreign cards on a Nigerian ATM. You are paid official rate or even less (Payoneer is about 193). So the banks again, have earned dollars on the cheap as the foreign banks must settle the transaction in USD.

Now it gets interesting.

a) You make a PayPal payment from Nigeria. You are billed at N283 (what UBA charged me last week of December.
b) You make a cross-border payment on a POS or website. You are billed at black market rate.

So when the Nigerian banks now have to settle the foreign merchants, they do so using your acquired dollars they got at official rate and sold to you at black market rate. So the banks are making a killing off the differential.

Until a banker comes here to counter what I have said, this is my understanding of the situation.

Bro, you captured the situation succintly in my own opinion. I have been thinking along this line for the past two or so months. The banks have paid me no more than N186+ ever while withdrawing between 214 and 430 bucks a month with the USD-denominated Payoneer card. But when making deposits to sites like PayPal and Neteller I get charged at black market rate.

Well, I've decided to stay off making withdrawals as much as possible until the rate differential reduces. CBN is turning to an accomplice in this matter.

stagger:


Well, I am telling you what was obtainable just before the CBN banned foreign payments with Naira MasterCards entirely.

a) You receive Moneygram or Western Union: you MUST receive the cash in Naira at the official rate. In other words, the banks buy it off you at maybe N198 to $1.
b) You use your foreign cards on a Nigerian ATM. You are paid official rate or even less (Payoneer is about 193). So the banks again, have earned dollars on the cheap as the foreign banks must settle the transaction in USD.

Now it gets interesting.

a) You make a PayPal payment from Nigeria. You are billed at N283 (what UBA charged me last week of December.
b) You make a cross-border payment on a POS or website. You are billed at black market rate.

So when the Nigerian banks now have to settle the foreign merchants, they do so using your acquired dollars they got at official rate and sold to you at black market rate. So the banks are making a killing off the differential.

Until a banker comes here to counter what I have said, this is my understanding of the situation.

What about now?

its true I was charge 447N for £ when i used my card in the UK to buy something of 88£ they took 39,306N out of my account

stagger:


Well, I am telling you what was obtainable just before the CBN banned foreign payments with Naira MasterCards entirely.

a) You receive Moneygram or Western Union: you MUST receive the cash in Naira at the official rate. In other words, the banks buy it off you at maybe N198 to $1.
b) You use your foreign cards on a Nigerian ATM. You are paid official rate or even less (Payoneer is about 193). So the banks again, have earned dollars on the cheap as the foreign banks must settle the transaction in USD.

Now it gets interesting.

a) You make a PayPal payment from Nigeria. You are billed at N283 (what UBA charged me last week of December.
b) You make a cross-border payment on a POS or website. You are billed at black market rate.

So when the Nigerian banks now have to settle the foreign merchants, they do so using your acquired dollars they got at official rate and sold to you at black market rate. So the banks are making a killing off the differential.

Until a banker comes here to counter what I have said, this is my understanding of the situation.

I have been planning on buying some gadgets from eBay but due to the exchange am still waiting. I hope things normalise soon but really I have been waiting for 6 months now

adedejidamilare:
I have been planning on buying some gadgets from eBay but due to the exchange am still waiting. I hope things normalise soon but really I have been waiting for 6 months now

When I started this thread, I wanted to register for an exam whose fee is in dollar. Since then I've been waiting for dollar to come down. It hasn't. Instead, its getting worse

U1:


Bro, you captured the situation succintly in my own opinion. I have been thinking along this line for the past two or so months. The banks have paid me no more than N186+ ever while withdrawing between 214 and 430 bucks a month with the USD-denominated Payoneer card. But when making deposits to sites like PayPal and Neteller I get charged at black market rate.

Well, I've decided to stay off making withdrawals as much as possible until the rate differential reduces. CBN is turning to an accomplice in this matter.

Pls what's payoneer current ATM charge?

warrenweste:
Pls what's payoneer current ATM charge?

Don't know. Not sure if I have used an ATM for withdrawal this year.

More ideas: https://www.practicalbusinessideas.com/dollar-to-naira-exchange-rate-today/

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