Understanding Exchange Rate Fluctuations: A Guide for Timon Customers Description

We've noticed many of you have questions about changes in exchange rates. This article explains why exchange rates change and how they affect your Timon experience.

What is an Exchange Rate?

An exchange rate is the value of one currency in relation to another. For example, it tells you how many Naira you need to buy one US Dollar, or vice versa.

Why Do Exchange Rates Change?

Exchange rates fluctuate due to a number of economic and political factors:

• Supply and Demand: If more people want to buy USD with Naira, the Dollar’s value increases relative to the Naira.

• Economic Performance: A stronger economy usually means a stronger currency.

• Inflation Rates: Lower inflation strengthens a currency; higher inflation weakens it.

• Interest Rates: Higher interest rates attract foreign investment, increasing demand for the currency.

• Political Stability: Political uncertainty can cause a currency to lose value.

• Government Debt: High national debt can lead to inflation and a weaker currency.

• Terms of Trade: A strong export-import balance can boost a country's currency value.

How Does This Affect Timon Customers?

As a Timon user, exchange rate changes may affect:

• The purchasing power of your Naira card when used for international payments.

• How much Naira you need to load your USD VISA or USD MasterCard.

• The relative value of the funds in your USD wallet compared to the Naira.

What Can You Do?

• Stay informed: Keep an eye on financial news that might affect currency rates.

• Plan ahead: Time large payments or card funding when rates are favorable.

• Diversify: Use both Naira and USD cards depending on your needs.

• Use Timon tools: Check rates and transaction details directly in your app.

Our Commitment to You

We’re committed to giving you the best possible experience by providing competitive rates and clear communication. If you ever have questions, our support team is ready to help.