By Philip Briggs
Edition 30: Spring 2005
Until about 15 years ago, delusional official exchange rates encouraged a thriving black market in most parts of Africa. Indeed, there were countries ‐ Tanzania springs to mind ‐ where changing money legally meant paying ten times the going rate for local services and products. And this scenario created several problems for travellers: not only a small but real risk of arrest, but also potential exposure to scams such as bogus police raids.
Fortunately, official exchange rates are generally somewhat more
realistic today, and with a few exceptions ‐ notably Zimbabwe ‐ the
need to use the black market is largely a thing of the past. Even so,
there remain circumstances in which it may be necessary to change money
informally, most obviously when crossing international borders that
lack proper exchange facilities. And while the informal currency trade
at such borders, if not strictly legal,is usually openly tolerated, it
also remains a breeding ground for fraudsters.
There are several things you can do to help avoid being robbed or taken
for a ride. Before you reach the border, stow the money you intend to
change in a separate place to your main stash of foreign currency.
Ideally, you should plan on changing leftover currency from the country
you are leaving, as most moneychangers at borders deal almost
exclusively in local currencies with local travellers ‐ though US
dollars in cash are also widely accepted.
Ask around in advance for the current exchange rate, and work out
roughly what sum to expect, making sure you watch out for the potential
confusion created by the wild decimal shifts involved in many African
currency transactions. Upon arrival, expect to be mobbed by a gang of
vociferous moneychangers, all of whom will claim to offer you the best
rate. Pick one of them ‐ it probably doesn’t matter which one ‐ and
make it clear that you will deal with him only once his pals have
backed off.
At some borders you might need to negotiate a good rate. At others it
will be pretty much fixed. Either way, the rate will almost certainly
be below par, since the border moneychangers are basically small-time
entrepreneurs who derive their income from the gap between their
selling and buying price.
Pushing too hard for a favourable
deal carries the risk of weeding out any honest broker ‐ and should you
be offered an exceptionally good exchange rate, you can assume that
you’re being set up.
Having settled the deal in principle, insist on taking the local
currency and counting it before you hand over your money or expose its
location. If the sum is incorrect, then it’s probably phase one of an
elaborate con trick, so safest to hand it back, walk off, and have
nothing further to do with that person or other moneychangers in the
immediate vicinity.
Because the exchange rate at borders tends to be low and the atmosphere
reliably fraught, I don’t normally buy significantly more local
currency than I need to catch transport on to the next town and cover
me until a bank or forex bureau will be open there. I’ve been caught
out before, crossing a border over a weekend or public holiday. Trust
me, there are few more dismal introductions to a new country than being
stuck in a dopey small town for the duration of a long weekend without
enough local currency to move on. Indeed, it is the one circumstance in
which I miss the persistent hiss of “Change money? Good rate for you my
friend...” that characterised Africa back in the days of the ubiquitous
black market! |
