Five Questions to Ask Before You Exchange Currency

Exchanging currency should be simple, and most of the time it is. Where people run into trouble, it is usually because something was assumed rather than asked. A rate was quoted the other way round, a figure did not include something, or a quote had quietly expired.

These five questions take a minute to ask and remove almost all of that uncertainty.

1. What is the rate, and which way does it apply?

Every currency dealer has two prices: the rate at which they buy a currency from you and the rate at which they sell it to you. The difference between them is how a dealer covers its costs. Make sure the rate you are given is the one for your direction. If you are buying dollars, you need the sell rate; if you are selling dollars, you need the buy rate.

It also helps to confirm how the rate is written, for example "naira per one US dollar", so there is no confusion about what the number means.

2. Exactly how much will I receive, or pay?

A rate on its own is only half the picture. Ask for the final figure: the total amount of currency you will receive for the amount you are exchanging, or the total you will pay for the amount you need. If there are any charges, ask whether they are already included in that figure. A clear final number is the easiest thing to compare and the hardest thing to misunderstand.

3. How long is this quote valid?

Because exchange rates move, a quote usually holds only for a limited time. Ask how long it stands and what happens if you are not ready to proceed within that time. If you need to come back tomorrow or next week, expect the rate to be confirmed again on the day.

4. What do I need to bring or provide?

Depending on the type of transaction, the amount and the rules that apply, you may be asked for identification or supporting documents. Asking in advance means you can arrive prepared rather than making a second trip. For your own protection, share documents only through the channel the dealer specifies, and never send sensitive details to an unverified phone number or address.

5. How and when does settlement happen?

Settlement is the moment the exchange is actually completed: when you hand over one currency and receive the other. Ask how it works: where it takes place, how payment is made, and when you can expect to receive your currency. Knowing the sequence in advance means there are no surprises on the day.

One more habit worth keeping

Keep a record of every exchange: the date, the amount, the rate and the final figure, along with any receipt you are given. It takes seconds, helps if a question ever comes up later and is invaluable if you exchange currency regularly for travel or business.

A good dealer welcomes questions. If someone is reluctant to explain a rate or a figure, take that as a reason to slow down.

Ask us anything

At Sofex we would rather you understood every part of an exchange than felt rushed into one. If you have a currency need, post an order and a member of our team will follow up to answer these questions with you before anything proceeds. You can also contact us with a question first.