Stanbic IBTC Bank, Standard Chartered Bank Nigeria and Guaranty Trust Bank on Friday announced the suspension of their overseas ATM card services. Also suspended by the banks are online transactions priced in foreign currencies. This means that customers of the public bank forex today dollar will no longer be able to use their debit or credit cards to make online transactions that are denominated in dollars, euros, pounds sterling and other foreign currencies.
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 Nigerian retailers. Dear customer, kindly note that effective October 18, 2016, your ability to carry out transactions priced in foreign currency using our naira debit and credit cards will be suspended. We apologise for any inconvenience in this regard. Both Stanbic IBTC Bank and Standard Chartered Bank Nigeria advised customers seeking to carry out transactions denominated in foreign exchange to apply for dollar or pounds sterling debit credit cards. According to them, the dollar or pounds sterling debit or credit cards will be linked to the customers’ domiciliary accounts.
GTBank also announced the suspension of the ATM cash withdrawal service abroad. We write to inform you of the monthly spending limits currently applicable when using your GTBank naira Master Card for international payments via PoS and online. The development will make students studying in the United Kingdom, United States, Canada, Ukraine and other parts of the world to face more challenges getting their monthly stipends from their parents. Most of the students had relied on the ATM card withdrawal to get their monthly stipends from their parents before now. This means customers seeking to do foreign transactions will have to open domiciliary accounts and fund same with dollars, pounds or euros purchased from the parallel market at the prevailing exchange rates. Although other banks have yet to announce the suspension of ATM card services abroad, findings by our correspondent showed that many lenders had reduced drastically the amount that customers could withdraw via ATMs abroad.
This is despite the fact that the banks have in the past few months reduced the monthly total amount of forex-denominated transactions that customers can do, using their naira debit or credit cards via ATMs and PoS terminals abroad as well as online payments or transactions. 100 due to their inability to source for dollars to fund the transactions. Top banking officials close to the development told our correspondent under the condition of anonymity that banks were increasingly finding it difficult to fund their foreign-currency denominated services, especially online forex transactions and overseas ATM withdrawals, as well as PoS usage overseas by customers. We have to stop the services.
Formerly, we were sourcing forex at high prices and we were selling same to customers at similarly high prices. This is coupled with the fact that some bank customers are using the platforms to do round-tripping. It is high time we stopped it. The decision by some banks to suspend overseas ATM card services and online forex transactions came barely one week after the CBN, through the Bankers’ Committee, raised concerns about what it called the indiscriminate and suspicious manner in which some bank customers were spending dollars and other foreign currencies abroad through their naira debit cards. 50,000 annual forex limit it imposed would be barred from the nation’s forex market. The Director, Banking Supervision, CBN, Mrs.
Tokunbo Martins, stated this after the 329th Bankers’ Committee meeting held at the apex bank’s office in Lagos on Wednesday. 50,000 annually on their naira debit cards. For a while, the policy has been abused by bank customers, and the CBN has not taken any step to that effect. We have decided to take the step now to enforce the rule. So, we want members of the public to remember that that rule is in place.
All your accounts are linked to a particular Bank Verification Number. 50,000 per annum, if people continue to breach that rule, they will lose access to forex market. Dollar scarcity has been ravaging the economy after the price of crude oil, Nigeria’s main forex earner. 44 per barrel from June 2014. The nation’s foreign exchange reserves have been depleting since then.