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CBN Restricts Use Of Naira Denominated Cards Abroad - Travel (3) - Nairaland

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Help! If You're Using Naira Atm Cards Abroad, What Is The Exchange Rate ? / Nigerian Students Abroad Protest The Ban On The Use Of Naira ATM Cards. / Buharinomics: Banks Stop Use Of ATM Cards Abroad (2) (3) (4)

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Re: CBN Restricts Use Of Naira Denominated Cards Abroad by owagbeba: 9:43pm On Jul 07, 2015
What a load of rubbish is this new policy.
How does one buy dollar except from the black market?
Moneygram outwards is so clogged, no chance to send in an application because the banks have a backlog of applications(transfers) to process within 30mins window (8 ~ 8.30am) daily.

Dutch auction is closed, SMEs can no longer bid through the banks.

Black market rates are outrageously high, forcing importers to raise prices. Inflation looming!

Now this rubbish policy -canceling the only source of forex at CBN rate. What do they want SMEs to do?

3 Likes

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by tsdarkside(m): 9:50pm On Jul 07, 2015
Ebig22:
I like buhari d best president

its not even already one year ohhh...see how things are changing silently......
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by persius555(m): 9:53pm On Jul 07, 2015
erico2k2:

If you have ever imported anything you will give yourself a slap,have you asked yourself why they banned importation of bagged cement? and who does it favour?if they lift the ban on importation of cement a bag will cost N1000, so ask yourself who does the ban favours and enrich,i guess you know the answer..The UK even import tooth pick,banana etc, even rice.
It favors dangote, elephant cement etc these companies employ more than 250,000 nigerians. Nothing stops u from starting ur own business too and start making millions and employ nigerians. UK is the financial hub of europe, its economy can support importation of any good from other countries, besides UK economy is not export monolithic like ours.

1 Like

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by tsdarkside(m): 9:55pm On Jul 07, 2015
i see no problem in this decision....you buy local...and the outside world still have to buy from you,because,you have what the outside world need.....++ bussiness..................
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by Dee60: 9:56pm On Jul 07, 2015
[size=18pt]Economics 101

Never give an impression that your currency is suffering a crisis. If you do, a free fall of the currency may follow. [/size]

7 Likes 1 Share

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by owagbeba: 9:57pm On Jul 07, 2015
Let me explain the implications here. For an SME seeking to import goods from China; there are currently only two sources of forex to finance his import: black market and naira cash cards. Black market guys are selling dollar at 232/$ -very high! This leaves you with only the naira cash card option. With this cancellation of naira cash card overseas, then the only option is the former -black market.

At 232naira/$, the cost of spare parts, household electronic, electrical fittings, generators, plumbing fittings, used cars etc., will hit the roof in the next few months.

4 Likes

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by Nobody: 10:00pm On Jul 07, 2015
Nigeria is truly BROKE. Dollar will soon sell for N500 in the parallel market with associated galloping inflation. Poor oil sales and subsidy financing has crippled Nigeria economy. With Naira on free fall, the reverberating effect will make Nigerians curse Buhari. Here are my reasons.

Many corporations and producers of consumer goods (Nestlé, Unilever, P&G, GSK, CocaCola, MTN, Airtel, Etisalat, etc), which home currencies are not Naira, will hike prices to adjust their financial numbers and budgets, especially as most of their inputs are imported. To adjust the likely arbitrage on the purchasing power parity differential occasioned by falling Naira against their base currencies, price adjustment is inevitable. This will drive inflation and interest rates up.

Secondly, whether we agree or not, we are an import dependent economy. What do we produce that the world need except oil? Our appetite for imports is very wide that you cannot just curb with a fiat.

Thirdly, aside educational and medical tourism, Nigerians are one of the largest spenders in most world shopping malls. How do we finance this? Average Nigerian mother want to go to US or Canada to give birth. Thousands of Nigerian students are studying overseas with average annual school fee of about $50000 per annum. This is excluding accommodation and feeding.

Fourthly, many small scale enterprises will close shop. Apapa port will soon experience low activities as most importers will either close shop or relocate.

Fifthly, we have a political system that is meant for very rich countries. Imagine 774 LG Chairmen with their wives and average of 10 councillors. 36 Government houses with aides and average of 14 commissioners and paraphernalia of special assistants, Board members, etc. 36 Houses of assembly with about 1400 or more members, speakers, aides, etc Then you come to Federal and I think you have the idea of what operates at this level.

All of these is dependent on Oil from Niger Delta. Pathetic to say the least.

10 Likes

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by sunkoye: 10:14pm On Jul 07, 2015
persius555:
If nigerians would cut down on their thirst for anything foreign and patronise locally made products, with this policy in place for a period of six months, our foreign reserve will shore up and investors will have confidence in our economy. And the value of naira against dollar will improve. These are the sacrifices we all need to make to save our nation from drowning in debt.
thank you baba mi. Wa gbayi.

1 Like

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by tsdarkside(m): 10:14pm On Jul 07, 2015
owagbeba:
Let me explain the implications here. For an SME seeking to import goods from China; there are currently only two sources of forex to finance his import: black market and naira cash cards. Black market guys are selling dollar at 232/$ -very high! This leaves you with only the naira cash card option. With this cancellation of naira cash card overseas, then the only option is the former -black market.

At 232naira/$, the cost of spare parts, household electronic, electrical fittings, generators, plumbing fittings, used cars etc., will hit the roof in the next few months.

how about cbn direct.... much cheaper.....
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by tsdarkside(m): 10:17pm On Jul 07, 2015
Xetima:
Dollars will sell for N500 soon. Good news for diaspora Nigeria. Soon $2000 = N1million. In an import dependent economy, this is a dumb policy. African "Greece" loading.

oyy...then let it sell for that much...important is we produce ourselves what we need....
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by persius555(m): 10:20pm On Jul 07, 2015
owagbeba:
Let me explain the implications here. For an SME seeking to import goods from China; there are currently only two sources of forex to finance his import: black market and naira cash cards. Black market guys are selling dollar at 232/$ -very high! This leaves you with only the naira cash card option. With this cancellation of naira cash card overseas, then the only option is the former -black market.

At 232naira/$, the cost of spare parts, household electronic, electrical fittings, generators, plumbing fittings, used cars etc., will hit the roof in the next few months.
Wrong. Most of the goods u mentioned can not be sourced locally, so CBN has not included it in the list of restrictions. 70 percent of the products that drain our foreign reserve are mainly, PMS, rice, sugar, palm oil, flour,poultry products etc Ask the NPA for datas to confirm. What do we export to balance act? Good old crude oil which has a depreciating value @ the moment. Crude was selling for as low as 55 dollar today. Nigerians dont care, change requires sacrifice.
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by plendil: 10:45pm On Jul 07, 2015
It also directed authorised dealers to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300.

so what happens if one needs to pay school fees to a foreign university, say $3,000?
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by linearity: 10:47pm On Jul 07, 2015
redcap:
the Central Bank of Nigeria (CBN), in continuation of its forex curbs, has said that such cards would not be allowed for crossborder payments.

http://newtelegraphonline.com/cbn-restricts-use-of-naira-denominated-cards/

Can some1 tell me how this will increase the demand for naira and reduce the demand for forex; which in turns increases the value of Naira?

If you use you naira denominated card abroad, there is demand for forex at the point of sales as your naira is sold (supply) and the local currency is bought (demand) to pay for your goods and services.

If you force people to get foreign domiciary accounts, in a bid to fund their account in Nigeria...they will sale their naira (same supply) and buy dollars of pounds (same demand).

The only difference is the number of transactions and frequency of transaction...in the former, you will generate multiple small small forex over time, with the later, you will generate a large forex over the same period of time.

However, if you look at the macroeconomic aspect, whichever approach you take, you will end of spending approximately the same amount, so I don't get it.

5 Likes

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by Nobody: 10:50pm On Jul 07, 2015
Wallahi if i talk say i understand this post i dey lie to God and man.

1 Like

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by redcliff: 10:55pm On Jul 07, 2015
redcap:
Just when I'm almost done gathering cards to access fund on my next trip abroad,now this.CBN should put their act together this restrictions is becoming unbearable.

I tell you. I was so angry today. I tried to withdraw 800fr as usual like lastyear and it did not even let me. Apparently they reduced it to 300 dollars. It meams that you still get charged N1k420 for each trasactions you have to make. N1k4 trasaction fees could collect 800$ at one transaction per day. Now you need about N4k to withraw the same 800 in 3days.. very silly i must tell you.

1 Like

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by patpeypey: 11:04pm On Jul 07, 2015
1. This is directed to companies (paragraph 2)
2. Individuals are still restricted to 300 usd per day or 50k per year minimum. (Paragraph 4)
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by 989900: 11:09pm On Jul 07, 2015
The CBN also directed banks to inform cardholders that the banking industry has instituted a tracking system on the use of naira denominated cards abroad, warning that violators of the fresh directive would be sanctioned.

This is to checkmate/reduce currency racketeering/round-tripping, money laundering and theft of public funds.

And, according to the article, I think it (the no transaction abroad) affects companies; not personal account holders . . . 'cause that will be st00pid and counter-productive.

When are the refineries gon' start working?

1 Like 1 Share

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by stagger: 11:13pm On Jul 07, 2015
Godwin Emefiele is an idiot. Does he not know who are carting away the dollars abroad?
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by ruggedtimi(m): 11:22pm On Jul 07, 2015
redcap:
They'll soon ban use of western union for outbound transfer.As long as this policy will shore up the value of naira then no problem.
already banned too..
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by ruggedtimi(m): 11:23pm On Jul 07, 2015
is it the reason...why i cnt have access to my account through atm in ghana
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by bigtt76(f): 11:27pm On Jul 07, 2015
Who appointed the CBN governor? Under whose tenor did the free fall of Nigeria currency began? Under whose tenor was our external reserve depleted? grin



tsdarkside:


its not even already one year ohhh...see how things are changing silently......
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by bigtt76(f): 11:28pm On Jul 07, 2015
Are you serious? What bank issued card is that?


ruggedtimi:
is it the reason...why i cnt have access to my account through atm in ghana
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by Guk: 11:29pm On Jul 07, 2015
patpeypey:
1. This is directed to companies (paragraph 2)
2. Individuals are still restricted to 300 usd per day or 50k per year minimum. (Paragraph 4)

The directive makes no sense at all becos Companies with ATM cards are limited to $300 per day withdrawal & $50k per annum just like any individual & can CBN tell us who holds the larger volume of ATM cards.....Individuals or Corporates?? In my layman's estimation, Individuals, but what do i know sef?? CBN sees all or do they or else why wld they be asking for daily repoerts from NIBSS.....is that not an indictment of their oversight functions?

And by the way, this appears targeted at SMEs cos i cant imagine that MTN Nigeria or AIRTEL or GLO or Cocacola have corporate ATM cards. Biko, if any banker on this forum has issued ATM cards to corporates like i listed, pls educate us

1 Like

Re: CBN Restricts Use Of Naira Denominated Cards Abroad by tsdarkside(m): 11:34pm On Jul 07, 2015
persius555:
Wrong. Most of the goods u mentioned can not be sourced locally, so CBN has not included it in the list of restrictions. 70 percent of the products that drain our foreign reserve are mainly, PMS, rice, sugar, palm oil, flour,poultry products etc Ask the NPA for datas to confirm. What do we export to balance act? Good old crude oil which has a depreciating value @ the moment. Crude was selling for as low as 55 dollar today. Nigerians dont care, change requires sacrifice.

oyy...then we need to start producing them ourselfs...toothpicks.?? realy.....are you people even serious??

you can not even pick your own tooth....soon you will forget,how to clean your yansh!!!!!
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by john650(m): 11:38pm On Jul 07, 2015
redcap:
Just when I'm almost done gathering cards to access fund on my next trip abroad,now this.CBN should put their act together this restrictions is becoming unbearable.
It is deja vu all over again. A return of the 1980s austerity measure by you guessed it, Buhari. Folks, fasten your seat belts because it going to be a bumpy ride.
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by john650(m): 11:43pm On Jul 07, 2015
Super1Star:
Does this Emefiele knows what he is doing sha?
He's got his head in the sand, a bunker mentality. It reminds of the 1970s when they use to have price controls on the price of certain goods, mostly food items. Did it work, no; and it won't work now.
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by ruggedtimi(m): 11:56pm On Jul 07, 2015
bigtt76:
Are you serious? What bank issued card is that?


uba mastercard
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by mikolo80: 11:57pm On Jul 07, 2015
Where jonathan find dis mumu cbn gov.How this one take become oga for zenith
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by grandstar(m): 12:15am On Jul 08, 2015
This man will ruin the economy

I was about t purchase some things online to make money but now I have to forget it

When will they sack this man? when?? angry angry angry angry angry angry angry angry angry angry
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by blank(f): 12:16am On Jul 08, 2015
plendil:


so what happens if one needs to pay school fees to a foreign university, say $3,000?

You can pay through banks as those spendings have not been restricted.
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by grandstar(m): 12:18am On Jul 08, 2015
bengems:
na waoh...I just applied for access VISA. so it's useless now eeekwa?

its limited to companies I think
Re: CBN Restricts Use Of Naira Denominated Cards Abroad by Volksfuhrer(m): 12:32am On Jul 08, 2015
Dee60:
[size=18pt]Economics 101

Never give an impression that your currency is suffering a crisis. If you do, a free fall of the currency may follow. [/size]

Thank you.

This is the worst CBN regime I've seen in years. CBN panic measures would ultimately lead to the collapse of the naira! It's only a matter of time!

1 Like

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