I want to start this post by telling you that bureau de change is a legal and and on this post, you will get the five major functions of bureau De change.
Let me stress this again cause i’ve seem to people arguing that bureau de change is not a legal business and i’m telling you that that is a big fat lie. Bureau de change is 100% legal business which is approved by the government and the central bank. When you talk about the illegal money exchange then you can talk about the aboki or the black market money exchange rate being illegal.
What is Bureau De Change
Bureau de change or currency exchange is a type of business whereby a currency is exchanged for another currency at a given rate. People go to the bureau de change to change a foreign currency to the currency of that country and one good thing about bureau de change is hlthat their exchange rate is high compared to most commercial banks. But i must tell you that some banks even here in Nigeria have bureau de change and if you want to exchange money with them, it will be on bureau exchange rate and not the bank rate which is relatively lower.
Bureau de change is not an easy business one can indulge in and whereas it cost millions of naira before you can get a license approved by the government. Though some do go about it without any license but if you are caught on the process, it is a long term jail punishment and a huge amount of money fine included.
Difference Between Bureau De Change And The Black Market
1. It is a legal money exchange rate licensed and approved by the government. While the black market is illegal as there’s no license to operate. You may be asking yourself that these peoples especially the abokis operate without any government officials harassing them and some will even operate right in front of a bank. And i’m telling you that you can only see this in Nigeria where no one obeys the laws of the land and there is high rate of bribery and corruption.
There are some functions of bureau De change we have and i’ve listed them below.
Five Functions of Bureau De Change
2. It plays a vital role to the business men and women. Through bureau de change, you can exchange your naira to dollar or dollar to naira etc which helps a lot in international trade.
3. Thanks to the fact that their exchange rate is very high when compared to the bank rate. For example if you are selling your dollars to the bank, the exchange rate will be 315 per a dollar or 305 per a dollar while the bureau de change is N360 per a dollar.
One thing i hate about the bank rate is that if you’re selling your dollars it is very low like N305 – N315 per dollar but if you want to buy the dollar, the amount will be high. Gtbank is N355 per a dollar, first bank is N360 per a dollar etc. And this is why i don’t buy or sell dollars in the bank but rather in a bureau de change or mostly black market.
4. They help in Personal Travel Allowance (PTA) /Business Travel Allowance.
5. Through bureau de change, you can make Mortgage Monthly Payments, School Fees, Medical Bills Payments, Credit Card Payments, Utility Bills Payments, Life Insurance Prenium Payments.
Benefits Involved in the Business
1. Availability it can be enjoyed by both non account and account holder of the bank
2. Affordable – the rate are very competitive
3. Security – services are rendered from selected and very secured offices
1. It creates room for money laundering. Yes this is just the plain truth. There are some corrupt men and women that are into this business, they do the good which is helping people to exchange money to any currency of their choice and same time they do the bad one which is money laundering.
It is very helpful for people that are Business Men & Women, Traders, Importer, Frequent Travellers.
This is where i end it on the five functions of bureau de change, if you have any question, feel free to ask.