Have you ever imagined buying the US Dollars at a cheaper price outside the bank 🏦, depositing it into your domiciliary account and withdrawing at a later time to sell it at a higher rate? (See how to save money in Dollars in Nigeria).
Well, in this post I shall be sharing with you the tricks you can use to buy the US Dollars at a cheaper rate even cheaper than what the bank is willing to offer you then you deposit it back into your domiciliary account and withdraw it at a later time to sell it. This is the trick most currency exchangers have been using to make noiseless cash.
What Are The Requirements To Start This New Money Making Venture?
* You will need a dorm Account. A dorm account is a type of account that is denominated in foreign currencies. It comes in USD 🇺🇸, Pounds 🇬🇧 and Euro 🇪🇺. For information on how you can get one, you need to read this post
* You need to have the cash or money to run this business. I will recommend you start with a minimum of a ₦100,000 or even more. You can start with any amount you wish but note that your profits will depend largely on your capital.
What Is Actually The Trick In Making Money From Buying The US Dollars?
You will need to locate a reliable FX dealer preferably a Bureau De Change (BDC) to purchase your Dollar. As at the time of making this post, 1 Dollar exchanges at an official rate of ₦411.47, while individual bank 🏦 rates are pegged between ₦440 to ₦450 and Black market rate sits at ₦515.
If you decide to save in Dollars by buying at a bank rate of ₦440 to a Dollar today, you will be making a profit of ₦75 per Dollar. Okay let's try to understand how much profit you will make from a capital of ₦100,000. To get the amount of Dollars ₦100,000 will fetch you using the bank rate, we have to divide the capital by the bank rate. Which is ₦100,000/₦440 which will give us approximately $227.27.
Okay let us multiply it by today's black market exchange rate of ₦515. So we'll have $227.27 times ₦515. This will give us ₦117,044 approximately. So this means you will make a total of ₦17,000 profit if you were to use the bank rates.
So if you want to be profitable in this business you will need to source for your Dollar at a cheaper price. This can be achieved by buying the lower denominations of the US Dollar bills.
If you have not been dealing with the financial market especially the black market in Nigeria you will not realise that 1 Dollar bill, 2 Dollar bill, 5 Dollar bill, 10 Dollar bill, 20 Dollar bills all have different rates from the $50 and $100 bills. (You may want to read this post on the real values of these currency bills here).
At the BDC, you will be able to get the one (1) to ten (10) Dollar bills at the rate of ₦380 to ₦400 while the $20 and $50 bills may cost you upto ₦440 to ₦450. While $100 bill will cost you ₦490 to ₦500 ( See BDC rates).
Calculating Your Potential Profits From Purchasing Lower Dollar Denominations
Let's say you settle for the $1 to $10 bills. Assuming you spent an average cost of ₦400 in purchasing them with a capital of one hundred thousand Naira (₦100,000). Dividing your capital of ₦100,000 by the cost of ₦400 will give us $250.
Now multiply your purchased Dollars by the current black market rate of ₦515. We have $250 multiplied by ₦515, now that will give us ₦128,750.
This means your potential profits for buying lower denominations of the US Dollar 🇺🇸 bills with a ₦100,000 is ₦28,750. This is why I indicated earlier that your profit potential in this business will depend largely on your capital.
Also note that this trick works as well with other currencies like the Pounds 🇬🇧 and the Euro 🇪🇺 that is, if you're interested in buying them anyways.
What Do You Do With Your Purchased Lower Denominations Of The US Dollars?
Head into your bank 🏦 and get the deposit slip for foreign currencies and deposit your money into your domiciliary account. You can leave the money there for a few days or weeks if you so wish then later on, you can go to another branch and withdraw your Dollars in $100 bills 😊.
Won't The Banks Reject The Lower Denominations Of The US Dollar 🇺🇸 Bills?
Every business has its risk and this is the risky part of this venture but it is worth trying. The reason I am making this post today is actually because of the circular released by the Central Bank 🏦 of Nigeria (CBN) on April 9th 2021 instructing all deposit banks to accept lower denominations of the US Dollars as well as old Dollar bills. The CBN threatened serious sanctions against any bank that fails to comply hence my reason for sharing these money making tricks with you 😊😄.
Note: I don't advise you use your whole capital in buying just $1 bills please make sure to mix it up with other denominations. Balance things up well so it doesn't look like you're taking advantage of the banks 🏦.