As an individual or a business person, making and receiving payment in a foreign currency is easier done through the domiciliary account. Having a domiciliary account is very important especially in Nigeria where the economy is unstable, making it essential for people to save in a foreign currency as a way to protect their money from losing value.
A domiciliary account (sometimes referred to as a “Dom Account”) is a type of current account that allows you to make and receive payments in foreign currency. It accepts foreign currencies such as euros, dollars and pounds. The domiciliary account works like any other savings account. If it is a dollar account, the money will be sent in dollars, likewise Euro or pounds. You can also withdraw the foreign currency from your bank and either change it at bank rates in the bank or at the parallel market.
Why you should have a domiciliary account
Domiciliary accounts are important if you want to start receiving money from abroad. You can easily open a dom account with most Nigerian banks and with it, you can:
- Receive payment in foreign currencies (USD, EUR, GBP).
- Transfer funds abroad.
- Get attractive interest rates and hedge against inflation.
- Carry out both local and international transactions easily. This is a good option for people who do business internationally.
- Use it to buy products on any online platform.
The requirements for opening a domiciliary account vary across different banks but are fundamentally similar. Here are the basic things that your bank will likely request of you.
- Referees: Two current account holders (preferably with the same bank) to sign the reference forms.
- Duly filled domiciliary account opening form.
- An existing naira account with the bank. It can either be a savings or a current account.
- Valid means of identification: either an international passport, permanent voters’ card, National ID card, or a driver’s license.
- Passport photograph.
- Utility bill issued within the last 3 months.
Various banks may require additional information from you but those listed above are the minimum requirements that will need to meet, for your dorm account to be created.