There are different exchange rates when you are withdrawing from your USD Payoneer account to Naira.
The exchange rate would depend on so many factors such as the time of withdrawal and what withdrawal method you are using.
In this article, we’ll look at the different exchange rates that are possible when you are withdrawing your Payoneer USD Funds to Naira.
Note that Payoneer also deals with other currencies such as the Pounds and Euro, but for this article, we’ll be focusing on the USD ($).
Payoneer Standard Exchange Rates for USD to Naira
Payoneer Standard Exchange rate is based on the prevailing exchange rate of the USD to Naira at the time of withdrawal.
So, primarily, Payoneer doesn’t set any exchange rate. Through their local payment partners, they exchange your funds using the official USD to Naira rates, minus their fees, which is about 3% of the funds.
So, assuming you are withdrawing $100 from Payoneer to your local bank account, and the official exchange rate for USD to Naira is 410/$, Payoneer would pay you (100$ x 410) x 97%.
That is 41,000 x 0.97 = 39,770 Naira.
Weekday Payoneer Exchange Rates for USD to Naira
Sometimes, when you withdraw from Payoneer to your Nigerian bank account, Payoneer doesn’t use the official exchange rates.
Instead, they use the current rate set by their local payment partners, which can differ depending if your withdrawal is made on a weekday or on a weekend.
What I’ve noticed is that Payoneer pays approximately 2.3% to 2.5% lower than the prevailing exchange rate for that day.
So, you can easily do the maths for yourself. All you have to do is to first find out the exchange rate for that day by using the aggregated rate provided by Google.
As you can see, the USD to Naira exchange rate for today is 414/$. With that we can calculate the approximate amount Payoneer pays on a weekday.
414 – (2.3% x 414) = 404/$
414 – (2.5% x 414) = 403/$
So, these rates are what you are likely to get, putting into factor the fluctuations of the USD to Naira exchange rates.
Weekend Payoneer Exchange Rates for USD to Naira
When withdrawing from Payoneer to your Nigerian bank account, the money doesn’t doesn’t arrive until the next weekday, but your funds are exchanged using weekend rates.
And as you know, weekend exchange rates on Payoneer are lower than what you’d get on a weekday.
That is why it is better to initiate withdrawal on Payoneer only on weekdays, especially midweek, when the exchange rates would have balanced.
In my experience, Payoneer USD to Naira withdrawals on weekends are usually around 5% lower than the exchange rates at the closing weekend.
I understand that this is a measure to buffer against sharp losses that can occur when the market reopens on Monday.
For this rate, we can do the maths.
414 – (5% x 414) = 393/$
You can see the big difference between the exchange rate at the weekend versus the exchange rates on a weekday.
393/$ vs 403/$
At these rates, if you withdraw $1000 on a weekday, you would get 403,000 compared to 393,000 on a weekend. That’s a whopping 10k loss just by withdrawing from Payoneer on a weekend!
Payoneer P2P Exchange Rates for USD to Naira
The best way to withdraw from Payoneer to Naira and get the full worth of your funds is to use P2P exchangers.
This way, you would get above official exchange rates and could even withdraw less than the $50 Payoneer threshold.
There are many online and offline P2P exchangers offering Payoneer USD to Naira exchange services at higher rates than you can get from most banks.