Naira vs Foreign currency Visa cards

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Posted by on Monday April 30, 2012 11:3:9:

It may be uneasy sourcing for foreign currency like the GBP (Pound) when you intend making a trip to London or the UK but I guess it can save you some costs such as the exchange rate. Each time you spend with your naira visa card for a different currency, you bank applies an exchange rate and this is variable since exchange rates are not fixed. For those planning to travel with a visa card and on low budget, it is probably better to go with a GBP visa card because then your exchange rate is predetermined so no extra need for conversions by your bank each time your spend.

When you get a Naira visa card from a Nigerian bank, the card would be denominated in naira and if you travel with it to other countries outside Nigeria like the UK and spend, your cost would include the exchange rate applicable at that time.

The major headache with naira visa cards is exchange rate
The naira has not been appreciating over other currencies like the USD or GBP for over 20 years now and may not appreciate much if you hold funds in your card in the naira.
So unless you are not really bothered about how much it would cost you, you can as well travel with your naira visa card to anywhere in the world and pay in naira. But if you are not willing to let your funds be left to flexible exchange rates, of which the naira is mostly on the receiving end, its probably best is to go with funds in your destination's local currency such as GBP or USD.


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