Nigerian Banks Halt Int’l Transactions on ATM Cards

Oct 21, 2016

The measure is as a result of the prolonged tension at Nigerian forex market

As scarcity of the
dollar deepens in the Nigerian forex market, commercial banks have started halting the use of Nigerian Automated Teller Machine card services for international transactions. Stanbic IBTC Bank, Guaranty Trust Bank and Standard Chartered Bank Nigeria announced the development in a note to their customers disbursed via text message and email. This development implies that ATM card services such as Point of Sale payment in foreign currencies, ATM withdraw abroad, online payment in dollars, pound sterling, euros and other foreign currencies will no longer be available. Henceforth, customers seeking to perform international transactions will open and fund a domiciliary account with foreign currency from parallel market. However, this is expected to affect many Nigerian businesses and Nigerian students abroad since they had relied on online transactions/ATM withdraw for foreign exchange. The
Nigerian Naira has been experiencing a decline
for over a year as forex reserves deplete to a 10-year low owing to lower oil prices in global market and production outage caused by pipeline vandals in Niger-Delta region of Nigeria.