Forex scarcity: Banks suspend ATM cards use abroad
Forex scarcity: Banks suspend ATM cards use abroad
Nigerians will no longer be able to use their Automated Teller Machines (ATM) card services abroad.
Deposit money banks announced of overseas and online
transactions denominated in foreign currencies as part of efforts to
manage the dollar scarcity crisis.
Some of the banks that announced the suspension of their overseas ATM
card services and online transactions priced in foreign currencies are
Standard Chartered Bank of Nigeria, Guaranty Trust Bank and Stanbic
IBTC.
A message sent by Stanbic IBTC to its customers’ stated that all
transactions done outside Nigeria will, henceforth, be through a dollar
debit/credit card.
“Dear valued customer, thank you for continued business. On account of
current market conditions, please note that with effect from October 18,
2016, you would not be able to use your naira debit cards for
international transactions. If you wish to carry out transactions priced
in foreign currencies from that date; you can request for a USD card
(debit or prepaid) from any of our branches,” the message from Stanbic
read.
In a message to its customers, Standard Chartered Bank said: “Please, be
informed that effective immediately, your naira denominated debit cards
will no longer be functional for international transactions. This is
due to the current volatility in the foreign exchange market. Your
naira-denominated debit cards can only be used for local transactions at
Point of Sale terminals, Automated Teller machines and online for
Nigeria retailers.”
In the last few months, banks in Nigeria have reduced monthly forex
transactions of customers, through online payments or PoS and ATM
terminals abroad.
The Central Bank of Nigeria’s Bankers Committee had raised concerns
about what it described as the ‘indiscriminate’ manner in which some
bank customers were spending foreign currencies through their naira
debit cards. It subsequently advised banks to slash their daily ATM
withdrawal limits abroad to $300, but, many banks further slashed the
withdrawal limit to $100.
At the 329th bankers’ committee meeting held in Lagos, CBN’s Director of
Banking Supervision, Mrs. Tokunbo Martins said the apex bank has
enacted a rule where bank customers are not allowed to withdraw more
than $50,000 annually on naira debit cards.