A UBA domiciliary account is a special bank account that makes it possible for the UBA clients accross Africa to save their money in foreign currency rather than in their local currencies.
When applying to open a Domiciliary account, you can either chose any foreign currency of your choice (Dollar, Euro, Pounds etc) that your local currency will be converted to and stored in your UBA dormiciliary account.
For example if i choose dollar, every cash i deposit in to my UBA domiciliary account will be converted and stored in dollars. So if deposite 7000frs CFA (my local currency) in to my domiciliary account and later check my domiciliary account balance, what i will see is $12 and not 7000frs CFA (my local curency).
You may likely want ask; BUT WHY DO SOME PEOPLE PREFER TO SAVE THEIR MONEY IN FOREIGN CURRENCIES RATHER THAN THEIR LOCAL CURRENCY.
UBA Domiciliary accounts are usually owned by international business men (the importers and exporters) who wish to protect their businesses from financial loss through currency devaluation.
Since money is saved in their domiciliary accounts in foreign currency rather than their local currency, their businesses are not affected by currency devaluation.
For example most international business men in Nigeria without a domiciliary are now suffering from financial loss due devaluation of the Naira. They now spend more to import and export. But the international business men with a domiciliary account won,t cry when there,s devaluation of currency because their money has been saved in their domiciliary account in foreign currency. They will only be affected when there,s devaluation in their prefered foreign currency.
Infact in a period of devaluation(of a local currency) , those people with a domiciliary account will instead profiteer from the situation because when they wish to withdraw money from their domiciliary account, the foreign currency will be converted back to their local devaluated currency making it possible for them to even withdraw twice the amount they deposited in to their domiciliary account.
Holders of a Domiciliary account can also receive money through wire tranfers in foreign currency.
So if you wish to protect your business from financial loss through currency devaluation, then you need to open a domiciliary account with UBA (the united bank for Africa) and start saving your hard earned money in foreign currency.
Please take note!
Not only the international business men are affected by currency devaluation. If you have ever bought an item online, there,s a high probability that you must have been affected by currency devaluation (fluctuation).
In 2016, i felt so bad when i was unable to pay for a domain name i won in the Godaddy domain name auction due to currency fluctuation.
I bided on a domain name in Godday auction and by the special grace of God i won the auction for just $20. I was expected to pay for the domain name within 2 days or else the domain name will go to the second highest bidder.
So i checked the equivalence of $20 in my local currency (CFA) and it was 18,000frs cfa. So i went to my nearest UBA branch and deposited the cash in to my UBA Africard and later checked my UBA Africard balance online to make sure that the money was deposited. Truely it was deposited.
After confirming that the money was deposited in to my UBA Africard, i wanted to pay for the domain name right away. But i said to myself you already won the auction, why are you in a haste… today is Saturday, you still have enough time (till Monday). So i decided to pay for the domain name the next day (Sunday).
When i tried to make the payment on Sunday, i kept receiving an alert like the money in your card is not enough.To cut a long story short, i later found out that there value of dollar increased overnight (fluctuated). When i did my calculation $1 was 580frs CFA. Thats why i deposited 18000frs in to my UBA Africard thinking that it will be enough and not knowing what will happen over night. That sunday $1 was $620.
What happened overnight? is the 64,000 question that only the Forex experts can answer. So just like that, i was unable to pay for the domain.
If that money was deposited in my domiciliary account i couldn,t have been affected by that little currency fluctuation overnight because the money would have been stored in my domiciliary account in dollars i.e. $20.
I hope you now see the importance of a UBA domiciliary account?