Business
Forex scarcity: More banks suspend foreign transactions on Naira Mastercard
More Banks have suspended international transactions on Naira Mastercard with the latest being Guaranty Trust Bank (GTBank) as Nigeria struggles with forex scarcity.
A notice from the bank received by customers showed that the naira Mastercard would be blocked from conducting foreign transactions from Saturday, December 31, 2022.
Also, the naira Mastercard will not perform international Point of Sales (POS) transactions, as well as Automated Teller Machine (ATM).
The statement reads, “We write to inform you that you will no longer be able to use your naira Mastercard for international online and POS transactions effective 31st December 2022.”
Other financial institutions like Standard Chartered Bank also took same decision in July, with Flutterwave and Eversend also suspending international transactions on their virtual card services, while Zenith Bank reduced its international spending limit on naira cards to $20 a month, from $100, similar to United Bank for Africa (UBA).
First Bank of Nigeria Limited had suspended international transactions on its naira Mastercard from September 30.
Banks’ decision followed consistent dollar scarcity and challenges faced by manufacturers and other real sector operators in sourcing foreign exchange from the economy.
Banking sources said 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.
In July, Standard Chartered Bank suspended international transactions on its naira visa debit card.
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In a recent statement to its customers, the bank said such transactions would not be available on its naira credit card, virtual card and visa prepaid naira card.
Zenith Bank Plc sent an emailed note to customers on the new payment plan abroad. The bank said: “Please be informed that we have temporarily suspended the use of Zenith Bank Naira cards for International Automated Teller Machine (ATM) cash withdrawals and PoS transactions.”
“Additionally, the monthly card spend limit for web transactions has been reviewed from $100 to $20. This review is in response to today’s economic realities.”
Stanbic IBTC Bank, Standard Chartered Bank Nigeria and Guaranty Trust Bank had few years back, announced the suspension of their overseas ATM card services.
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.
The Central Bank of Nigeria (CBN) had earlier expressed concerns about the indiscriminate and suspicious manner in which some bank customers were spending dollars and other foreign currencies abroad through their naira debit cards.