A lot of interest have understandably been shown by Nigerians since the new foreign exchange rate policy was introduced. From those looking to fund their domiciliary accounts to those seeking to transfer money abroad to their wards, friends and family.
Details have so far been sketchy for a lot of people increasing the confusion out there as to what exchange rate to track on a daily basis. In this article, we will be focussing on a practical example of what you pay if you decide to transfer cash abroad via either of MoneyGram or Western Union. We focus on MoneyGram here.
A Nairametrics follower sent us a break down of the rates she was charged for transferring forex to her loved one abroad. Here is the breakdown;
- Amount transferred $751.73
- Transfer amount in Naira – N231,000
- Transfer Fee – N17,500 (rate changes depending on amount being transferred)
- Transfer Taxes – N875
- Exchange Rate N1 = $0.003254 or N307.3
Those who have made transfers recently will surely be familiar with these rates and will confirm that what they get is nowhere near the official exchange rate.
Recall that the official exchange rate is around N281 confirming our suspicion that we now have a situation were different rates apply for different transactions. To be clear, Money Gram does confirm in its receipts that currency is converted at an exchange rate that is determined by MoneyGram or its Agents.
MoneyGram therefore charged N307.3 resulting in a premium of between 9-10%. Blackmarket Exchange rate is between N340 and N350.