Understanding Exchange Rates and Fees When Sending Money to Nigeria From the UK
Nigerians enjoy an edge as hard workers and dedicated professionals in the United Kingdom. Still, sending money to families in Nigeria from the United Kingdom has become a task owing to the multiple charges associated with the transfer. Most importantly, the prevailing exchange rates can also confuse many.
Before you decide to send money from UK to Nigeria, you must get familiar with the exchange rates and the associated fees. This will ensure you being able to transfer money back to your country in a seamless and hassle-free manner!
So, what is the Exchange Rate?
In simple terms, it is a rate at which one currency will get exchanged for another currency. The exchange rate affects trade as well as the movement of money between countries. Let us understand this with an example.
Suppose you earn £1,000 monthly in the UK, and you want to send £500 pounds to Nigeria. The value of those £500 pounds in terms of Nigerian currency depends on the rate of exchange. If the prevailing exchange rate is 956 on the day of the transfer, the value of £500 pounds in the UK will be NGN 478,000 in Nigeria.
However, things are not so easy. There are many other factors that will come into play to calculate the final amount. Let’s see that below.
Understanding How Exchange Rate Works
First of all, the fee for transfer will kick in. This means that you will not be able to transfer 478,000 NGN or send money from UK to Nigeria just by considering the prevailing exchange rate. You will have to account for the transfer fees.
If the transfer fee is NGN 6, you will be able to send NGN 475,000 (950 * 500) at the exchange rate of 1 pound = NGN 956. The transfer fee will be deducted from the exchange rate.
However, remember that the rate of exchange between two countries keeps changing every day. In turbulent times, it changes within minutes or hours.
Let us say you got £1,000 on the first day of the month. You observe that the rate of exchange is NGN 956 per pound, and the transfer fee is NGN 6. You assume that you will be able to transfer NGN 475,000 by transferring £500 at the existing rate and fee. At this point, you call your loved ones back in Nigeria and inform them that they can buy or spend money on what they want.
However, you stay busy that day and decide to transfer at a later date. To your surprise, two days later, the exchange rate changed to NGN 925 per pound and the fee became NGN 5. So, you could only transfer NGN 460,000 instead of NGN 475,000 (previously). What a setback to you and your family! Even if you send £500, your loved ones will be getting less money. This is only because of the exchange rate fluctuation.
Things to Keep in Mind if You Plan to Send Money from UK to Nigeria
First of all, keep an eye on daily news to see if anything will impact the exchange rate. Are there chances that there will be a drastic fall in exchange rate due to a change in monetary policy or external factors? If so, you are better off sending money quickly.
Also, if you think that the value of NGN will depreciate in a week, wait for that time and then make the transfer to send more money. This way, you will be able to send more Nigerian money against the UK currency. Other global factors that you should keep an eye out for include unemployment, war, and political stability.
Closing Thoughts
Understanding the exchange rate is necessary for those who wish to remit money to their home countries. If you are working in the UK, you should weigh your options on maximising your remittances. Monitor the exchange rate daily and go for the best money transfer app to send money from UK to Nigeria.
If you are searching for the best money transfer operator to send money from UK to Nigeria, then you are at the right destination.
Choose Unique B to send money from UK to Nigeria and get access to the following benefits:
- Mobile App Transfer
- Simple and Secure
- You pay what we display
- Real-time transfers
- Track the status of your transfer
Download our mobile app today and make 24x7 transfers.