Administrators FlyJ Posted December 20, 2015 Administrators Share Posted December 20, 2015 Deposit Money Banks have commenced a process to stop all customers from using their payment cards, popularly known as Automated Teller Machine cards, for dollar-denominated transactions when they travel abroad with effect from January 1, 2016. SUNDAY PUNCH’s investigation also revealed the banks would not allow their customers to use naira-denominated ATM cards locally for transactions denominated in forex. This means bank customers will not be able to use their cards to buy products from foreign e-commerce sites like e-bay and amazon.com in which payments are made in forex. The development follows the lingering scarcity of foreign exchange, especially the dollar, to settle obligations arising from customers’ use of the ATM cards for forex-denominated transactions. Already, Standard Chartered Bank has notified its customers that from January 1, 2016, they will not be able to use their naira-denominated ATM cards for transactions that are denominated in foreign currencies, either locally or when they travel abroad. In a notice to its customers, Standard Chartered said, “This is to notify you that from January 1, 2016, your naira card will no longer be enabled for international use. This is as a result of the limited foreign exchange supply in the financial market.” Asked how long the suspension of cards from international transactions would be, the spokesperson for Standard Chartered Nigeria, Mrs. Dayo Adurogbo, said, “We cannot give a definite date. It depends on how soon it is available. We will do everything to meet our customers’ demand once it is available.” Further findings showed that a number of other banks had stopped customers from using their ATM cards abroad but had yet to officially communicate this to them. Some customers told our correspondent that when they notified their banks of plans to travel and the need to enable their cards work overseas, they were simply informed that the cards could not be enabled for now due to issues relating to forex scarcity. SUNDAY PUNCH findings showed others banks might issue notices similar to that of Standard Chartered Bank before the end of the year. “We had some discussions recently and some top bank officials said they would stop customers from using their naira-denominated cards for international transactions due to the serious challenges in getting forex to settle their international partners,” a top bank official, who spoke on condition of anonymity because he was not authorised to speak on the matter, said on Friday. The current situation means customers travelling abroad for Christmas and New Year may face severe payment challenges, a situation that may mar their shopping plans. The fall in prices of crude oil, the main earner of foreign exchange for Nigeria, has made the nation’s forex income to reduce drastically, creating dollar scarcity crisis for the Central Bank of Nigeria. The CBN has been rationing dollar to banks, importers and other forex users as the nation’s foreign exchange reserves continue to deplete, hitting $29.4bn on December 7, 2015. The PUNCH had exclusively reported on Thursday that banks had cut the amount that their customers could spend using their debit and credit cards abroad by between 70 and 90 per cent. This took effect during the first week of December for the majority of the banks. Specifically, banks cut customers’ card spending in foreign currencies from the annual $50,000 allowed by the CBN to between $5,000 and $15,000. According to findings by our correspondent, Ecobank Nigeria Plc has reduced its limit from $50,000 to $5,000, with a maximum of $500 monthly and $100 daily expenditure. Skye Bank Plc, in a notice to its customers via email, also slashed its international card spending limit from $50,000 to $12,000 annually, a maximum of $1,000 monthly and $100 daily. Wema Bank Plc also slashed spending on its payment cards from $50,000 to $10,000 annually, $1,000 monthly and $100 daily. Although other banks have yet to confirm their new international card spending limits, findings by our correspondent revealed that the new limits for most of them ranged from $5,000 to $15,000 annually, and $500 to $1,000 monthly. Source 1 Quote Link to comment Share on other sites More sharing options...
dequeen Posted December 20, 2015 Share Posted December 20, 2015 Yea. I heard the ridiculous news. And also that we as a nation, Nigeria, might be heading for a recession in 2016. Quote Link to comment Share on other sites More sharing options...
Moderators kimi Posted December 20, 2015 Moderators Share Posted December 20, 2015 It's very disheartening to say the least. Sad indeed. You'd understand better the implications if you had all your children schooling abroad while you watch your salary fall to three-quarters it's value. Now, no spending on Naira denominated cards abroad? Na wa. I'd seriously start praying for Nigeria. I was at mac the other day and the prices had gone up by over 20%. Not sure if those stores are a franchise. If they aren't then I see no reason why their prices should be as sensitive to forex volatility. Perhaps each business unit operates as it's own profit centre with procurement and distribution decentralised. Dunno. The lovely lady said shipping expenses.LOL. I would doubt that very much. Quote Link to comment Share on other sites More sharing options...
lala1990 Posted December 20, 2015 Share Posted December 20, 2015 You and your lovely lady.... This country need prayers. I can't start mentioning how much this news will affect me, but I'm sure a way around it can be found. Quote Link to comment Share on other sites More sharing options...
Moderators kimi Posted December 21, 2015 Moderators Share Posted December 21, 2015 There was just something about her that appealed to me. Not just in the face. I remember her giggling and I smile to myself. Thoughts of her are a temporary happy place!LOL. *covers face* I prayed for Nigeria today. It is well *sighs* Quote Link to comment Share on other sites More sharing options...
lala1990 Posted December 21, 2015 Share Posted December 21, 2015 Hmmm. Let me not derail. But hmm Quote Link to comment Share on other sites More sharing options...
M2DD Posted December 21, 2015 Share Posted December 21, 2015 Clueless people in power Quote Link to comment Share on other sites More sharing options...
Abystacy Posted December 22, 2015 Share Posted December 22, 2015 It's really saddening the way things have been over the last few months... Money is tight,Fuel scarcity has grown a new face and now this fores shit... inflation taking shape.. 1$= 280 as of yesterday. And our Tourist president saying he will make dollar equivalent to Naria...I wonder what shape our country is gonna take in 2016... from fuel scarcity to over inflated prices of goods in the market to now this... Quote Link to comment Share on other sites More sharing options...
Hawken Posted December 22, 2015 Share Posted December 22, 2015 If you shop online or travel out alot, now might be the time to invest in Visa prepaid cards. They come in really handy. I recommend them for instore shopping though. Quote Link to comment Share on other sites More sharing options...
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