Stats: 3,189,305 members, 7,936,900 topics. Date: Sunday, 01 September 2024 at 07:18 AM |
Nairaland Forum / Nairaland / General / Business / Dollar Scarcity: Banks Suspend ATM Card Usage Abroad (24018 Views)
Dollar Scarcity Stops Capital Repatriation By Investors / Senate Asks CBN To Suspend ATM Card Maintenance Charges / Naira Faces Further Decline On Continued Dollar Scarcity (2) (3) (4)
(1) (2) (3) (4) (5) (6) (Reply) (Go Down)
Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by obidevine(m): 6:10am On Oct 17, 2016 |
The foreign exchange crisis hitting the economy has assumed a new dimension with Deposit Money Banks announcing the suspension of overseas Automated Teller Machine card services and online transactions denominated in foreign currencies, OYETUNJI ABIOYE writes Deposit Money Banks have begun suspending their Automated Teller Machine cards (debit and credit) from working overseas as dollar scarcity continues to hit the economy badly. 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 banks 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. In a note to its customers on Friday entitled: ‘Suspension of international transactions on naira debit cards’, Standard Chartered Bank Nigeria 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 Nigerian retailers.” In a text message to its customers on Friday, Stanbic IBTC Bank similarly said, “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. The lender also slashed its monthly ATM forex transactions to $100. In a notice to customers on Friday entitled: ‘Review of the international spending limit on your naira Master Card’, the bank stated, “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. Previous monthly limit via PoS and online was $250; the new monthly limit via PoS and online is now $100. Kindly note that ATM cash withdrawal on your naira MasterCard is now only available in Nigeria.” 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. As of last week, findings showed that some banks had slashed their daily ATM withdrawal limit abroad from the $300 advised by the Central Bank of Nigeria’s Bankers Committee to $100 due to their inability to source for dollars to fund the transactions. Unconfirmed sources said some banks had reduced their monthly ATM withdrawal limit abroad to $100. 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. A top official of Deposit Money Bank, who spoke on the condition of anonymity, told our correspondent on Sunday, “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. But the situation is now tense; the dollar scarcity has assumed a new dimension. “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. Consequently, the regulator said it had concluded that bank customers who spent above the $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. She said, “In the CBN’s move to manage the demand for forex, there was a rule that was put in place that people were not allowed to withdraw more than $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. Now, that the BVN only allows you to withdraw only $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. It crashed from $110 per barrel to around $44 per barrel from June 2014. The nation’s foreign exchange reserves have been depleting since then. On Wednesday, the country’s external reserves hit an 11-year low of $24.21bn, the latest data posted on the CBN website showed. This means a limited amount of dollars will be available at the official interbank spot market, fuelling concerns over another round of depreciation of the naira. The foreign exchange reserves fell by $600m in two weeks before shedding $1bn in four weeks, the CBN statistics showed. An expert at Ernst and Young, Mr. Bisi Sanda, lamented on the dollar pressure on the economy. He said the Federal Government needed political will to address the issues fuelling dollar scarcity on the economy. He said, “The issue of dollar is very important to the economy. It is predicated on the fact that we are a dollar-denominated economy. It appears the government is still begging issues as far as the import-dependent state of our economy is concerned. “We need to fix issues, we need to go back to the drawing board. The CBN said between 2010 and 2016, a total of $11bn was sold to the Bureaux De Change annually. We need to plug leakages in this area.” http://punchng.com/dollar-scarcity-banks-suspend-atm-card-usage-abroad/ Copyright PUNCH. Cc - lalasticlala 2 Likes 1 Share |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by Wizzyblack3(m): 6:12am On Oct 17, 2016 |
Welcome to New Nigeria.. Nigeria of Buhari & APC. FTC#1- dedicated to all hustling guys and ladies who doesn't chose to belong to the kitchen & other rooms alone but are trying to be independent on their own, i pray God almighty will crown all our efforts with great success this new week. #HappyNewWeek 59 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by DannyJ19(m): 6:14am On Oct 17, 2016 |
ohk.....all those guy abroad wud be stranded abi.... 15 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by obidevine(m): 6:26am On Oct 17, 2016 |
All business men need to open a dom. Account 7 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by segebase(m): 6:53am On Oct 17, 2016 |
time to apply for dollar atm card 2 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by nony43(m): 6:53am On Oct 17, 2016 |
What in this world did we do to Vuhari? He has completely finished our economy. 11 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by Turks: 6:53am On Oct 17, 2016 |
Changel starts with... 1 Like |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by nnachukz(m): 6:54am On Oct 17, 2016 |
The change continues to unfold day by day. A round of applause to Buhari's economic team. Oh fela, you could have sang another music. Death why? 31 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by Lajet: 6:54am On Oct 17, 2016 |
Gtb Naira Mastercard have stop working in outside Nigeria for almost 3 months now. 12 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by saywhaat: 6:54am On Oct 17, 2016 |
BITCOIN is the way now. Bitcoin is recession-proof. Click my signature. 6 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by Bitterleafsoup: 6:55am On Oct 17, 2016 |
Boys are not smiling ... I was waiting for this to happen. Alhaji is once again in control of the Nigerian Banking System completely. Buhari has showed us once again that "The Everybody" he is for stay on the North side. 22 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by jimi4us: 6:55am On Oct 17, 2016 |
why cant buhari do us all a favour and just resign now before people will die finish completely 35 Likes 2 Shares |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by atoleybaba(m): 6:55am On Oct 17, 2016 |
Werrin concern agbero with overload.....ehya for the tourist aboard planning to go shopping aboard 1 Like |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by jimi4us: 6:56am On Oct 17, 2016 |
Lajet:is for k leg 6 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by jimi4us: 6:56am On Oct 17, 2016 |
saywhaat:is for goat 3 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by NwaNimo1(m): 6:58am On Oct 17, 2016 |
Evil Govt.... 10 Likes 1 Share |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by orlarbissy(f): 6:58am On Oct 17, 2016 |
![]() ![]() ![]() |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by CSNg: 6:59am On Oct 17, 2016 |
Adeosun, Emefiele, the CBN, Nigerian Banks, The FG and even Nigeria as a whole can GO TO HELL! Who needs an ATM card by a Nigerian Bank abroad when i got my Payoneer Card? Thank God for Payoneer! 15 Likes 1 Share |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by 989900D: 6:59am On Oct 17, 2016 |
Chaos. |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by captainprogress(m): 6:59am On Oct 17, 2016 |
I never knew things could go worse, I don't think this current administration has the populace at heart, all this policies are been implemented without proper consideration of how it will affect life's of Nigerians, rather all this govt want is to revive d economy with theoretical policies, APC is doin more harm than good...pls make Nigerians priority b4 implementing hash economic policies... 5 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by Qabt(m): 6:59am On Oct 17, 2016 |
After restriction of money transfer to foreign countries now they have suspended the usage of ATM abroad, it's really affecting Nigerians studying abroad and Nigerians planning to school abroad 6 Likes 1 Share |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by MAXIMAL123(m): 6:59am On Oct 17, 2016 |
Ok ooo, am watching in 3G 1 Like |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by acunon: 7:00am On Oct 17, 2016 |
Ok, e dun shele |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by tdayof(m): 7:00am On Oct 17, 2016 |
ATM-Blocked money gram - Working rate and possibility to send 10% Western Union - very high exchange rate and really difficult to find a bank willing to send. Everything is just messed up. ![]() 6 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by gbaskiboy: 7:01am On Oct 17, 2016 |
Nigeria is in state of Anarchy and Chaos....... Nothing is working again in this country 11 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by chukzyblingz(m): 7:02am On Oct 17, 2016 |
My Diamond ATM has not been working abroad since last year. I am in Nigeria right now and was planning to find out which bank's ATM works abroad, and this? Which way Nigeria? I think the best thing is to close all my Nigerian accounts 3 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by cococandy(f): 7:02am On Oct 17, 2016 |
![]() ![]() |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by martineverest(m): 7:03am On Oct 17, 2016 |
u mean i cant pay for application fee abroad? 2 Likes 1 Share |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by CACAWA(m): 7:03am On Oct 17, 2016 |
Okiedokie |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by LieDetector(m): 7:03am On Oct 17, 2016 |
But how am I going to fund my skrill and netteller account now? Buhari sef. 2 Likes |
Re: Dollar Scarcity: Banks Suspend ATM Card Usage Abroad by CACAWA(m): 7:04am On Oct 17, 2016 |
tdayof:I can sell pounds to you bro |
(1) (2) (3) (4) (5) (6) (Reply)
Confusion As New Naira Note Shortage Takes Toll On Nigerians!! / My Experience Making Income Through Digital Marketing / CBN Partners With Bitt Inc For eNaira, Shuns Nigerian Fintech Companies
Viewing this topic: 1 guest(s)
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 32 |