The Central Bank of Nigeria has said the decision of Deposit Money Banks to place a restriction on the use of Automated Teller Machine cards abroad by bank customers is due to scarcity of foreign exchange.

The apex bank said while it had no powers to reverse the restriction placed by the DMBs on the use of the ATMs abroad, the CBN was in support of the decision as it would assist in reducing the pressure on the naira.

So also did the apex bank in the country said it will now start selling foreign exchange directly to end users.

The Director of Monetary Policy Department of the CBN, Moses Tule, said these in Abuja when he spoke with newsmen.

Tule said the restriction of the usage of ATM cards might continue until the country could increase its foreign exchange earnings.

He said if banks had not taken the decision to restrict the use of the ATM cards abroad, some of them would by now be experiencing challenges meeting the overseas demand of their customers.

He said would have caused huge liabilities in the balance sheet of the banks, thus affecting their operations.

Tule said though the CBN sympathised with Nigerians for the sufferings they are experiencing in carrying out transactions abroad, there was little it could do to reverse the decision of the banks.

He said: “The limitation on the use of debit or credit cards outside the country was not a limitation that was placed by the CBN.

“They were restrictions that Deposit Money Banks placed because they have to settle whatever transactions you make with your debit cards with their corresponding banks in foreign currency.

“And if the banks do not have the foreign currency to do that, then you create a liability problem for them.”

On the solution to the hardship faced by Nigerians carrying out businesses abroad, Tule said: “Our priority as a nation for the allocation or use of foreign exchange is for the settlement of matured Letters of Credit that have been opened for importation, for the importation of petroleum products, until such a time when we have our refineries fully operational and we are not in a position to import fuel again to ensure that the wheels of economic development continue turning and running and for the importation of raw materials.

“By the time we meet these three priority areas, you will discover that people who are using their debit cards overseas for shopping can never be on the priority list.

“We do understand that it may not be all that the demands will be for shopping.

“We have seen that the reserves are not there and what we have we will use essentially for the purposes that will keep the wheels of the economy running.

“We have to produce for export.
“We can’t continue to depend only on the export of crude oil.

“It is a healthy development where Nigerians can no longer use debit cards abroad.
“But it is inconvenient.

“Right now the country is going through very difficult times because of developments in the oil market.

“Foreign exchange under the condition Nigeria has found itself has become a seasonal commodity.

“Seasonal in the sense that it depends on the movement of the price of oil.

“If oil prices are high, then we build reserves.

“If oil prices are low, then we have no reserves and we will be in a crisis situation.

“Does the CBN sympathize with the situation Nigerians find themselves not being able to use their debit cards outside the country?

“Yes the CBN certainly does sympathize with the hardship Nigerians are facing.

“But can the CBN stop it?
“The CBN cannot stop what the banks are doing now and the reason is very obvious.”

Source: https://www.today.ng/business/57950/cbn-insists-it-wont-reverse-restriction-on-naira-atm-card-abroad?utm_source=&utm_medium=twitter

Cc: Lalasticalala

A Government that listens. #EmefieleEconomics

*MODIFIED*

OMG!! FTC

Na wa oooooooooo......

So what's the wisdom behind this

If he like he should even close all banks self, Nigeria are survives

Allll izzzzzz weeeelllllll

Its quite unfortunate that 2016 will be difficult year for Nigerians in diaspora,


we are waiting for =N=1 equall 1$ promises Buhari promised Nigerians,

1 US dollar = 199.0500 Nigerian nairas

I am still buying Fuel at 130 a liter,

From the OP post

"Tule said the restriction of the usage of ATM cards might continue until the country could increase its foreign exchange earnings."

When?




Till 2019

I shake my head!


This is real Change!




Those who were canvassing for Change, The Change has come! Let's embrace it! lets endure it! The change is here to stay!

cool

when two elephants fight , it is the grass that get trampled.

Ti elese ba ji ya, olododo ma ba pi ni inu re.

This will be tough for diasporans

Give my $$ cash -No
make I use my card - No
To keep d money for bank don turn another problem o.

He said: “The limitation on the use of debit or credit cards outside the country was not a limitation that was placed by the CBN.

“They were restrictions that Deposit Money Banks placed because they have to settle whatever transactions you make with your debit cards with their corresponding banks in foreign currency.

“And if the banks do not have the foreign currency to do that, then you create a liability problem for them.”

That explanation is plain ridiculous. How can the CBN blame the banks, when they (CBN) are the ones that stopped banks from receiving dollar cash lodgements into domicilary accounts. Where did they expect banks to get FX to meet their international payment obligations, especially with the meagre Dollar sells to BDCs.
---
For the records, I fully understand the constraint the CBN is facing from low FX inflow into the Foreign Reserves due to low oil prices, however, the restrictions imposed by the Central Bank are extreme. With a daily limit ranging from $100 to $1000, How do I make a payment of $1500 for my professional exams? Or am I not supposed to write such exams again because the government is on a fvcking mission?
---
I believe the current CBN Governor is a weak link in this administration, as he may not providing the president with the right monetary policy options/advice. While there are obvious benefits from the CBN policy, I strongly believe that the NET result of the policy on the economy will be negative.

This is the height of stupidity from this inept government, the CBN will now sell directly to companies instead of BDCs and banks. Which kind of crazy monitoring is this?

Unfortunately this is where GEJ and his cohorts brought us.

If you like, call it blaming or whatever, it is the dollarized foreign reserves that determine the pressure on naira. And it is the same reserve that Jonathan dipped his hands and that of his comrades' to loot like there was no tomorrow. Now that the "tomorrow" is upon us, we're excusing them instead of calling for their head.

Una never see anything!

TonyeBarcanista:
This will be tough for diasporans

They already know and that's why they campaigned for change .. Remember, good things don't come easy ..

Maybe, they will all have to come back because Nigeria is now better than Dubai with constant 23 hrs/day power supply .. and the price of fuel to be reduced in January ..

PassingShot:
Unfortunately this is where GEJ and his cohorts brought us.

If you like, call it blaming or whatever, it is the dollarized foreign reserves that determine the pressure on naira. And it is the same reserve that Jonathan dipped his hands and that of his comrades' to loot like there was no tomorrow. Now that the "tomorrow" is upon us, we're excusing them instead of calling for their head.

Una never see anything!

For once, you sound incoherent ..

Who be *una* here .. Diasporans, PDP, Nigerians, CBN or the govt ..

dunkem21:



They already know and that's why they campaigned for change .. Remember, good things don't come easy ..

Maybe, they will all have to come back because Nigeria is now better than Dubai with constant 23 hrs/day power supply .. and the price of fuel to be reduced in January ..

The issue is complicated to be honest with you.

Senator Ben Murray Bruce there is the answer to your rants

dunkem21:


For once, you sound incoherent ..

Who be *una* here .. Diasporans, PDP, Nigerians, CBN or the govt ..

If it's only "for once", I deserve to be pardoned. Next?

We dey look

Bevista:
That explanation is plain ridiculous. How can the CBN blame the banks, when they (CBN) are the ones that stopped banks from receiving dollar cash lodgements into domicilary accounts. Where did they expect banks to get FX to meet their international payment obligations, especially with the meagre Dollar sells to BDCs.
---
For the records, I fully understand the constraint the CBN is facing from low FX inflow into the Foreign Reserves due to low oil prices, however, the restrictions imposed by CBN are extreme. With a daily limit of $1000, How do I make a payment of $1500 for my professional exams? Or am I not supposed to write such exams again because the government is on a fvcking mission?
---
I believe the current CBN Governor is a weak link in this administration, as he is not providing the president with the right monetary policy options/advice.

Let's see where the policy will lead before condemning it. No one say you cannot pay $1500 for your professional exam just source the dollars through the proper channel .

PassingShot:

If it's only "for once", I deserve to be pardoned. Next?

It's actually a complement ..

[s]

PassingShot:
Unfortunately this is where GEJ and his cohorts brought us.

If you like, call it blaming or whatever, it is the dollarized foreign reserves that determine the pressure on naira. And it is the same reserve that Jonathan dipped his hands and that of his comrades' to loot like there was no tomorrow. Now that the "tomorrow" is upon us, we're excusing them instead of calling for their head.

Una never see anything!

[/s]

i know you to be daft but I didn't expect it to be this much

chaii till 2019 it will be always Gej's fault.

well that's one thing I like you apc guys for we call it loyalty (but it's a stupid loyalty)

PassingShot:
Unfortunately this is where GEJ and his cohorts brought us.

If you like, call it blaming or whatever, it is the dollarized foreign reserves that determine the pressure on naira. And it is the same reserve that Jonathan dipped his hands and that of his comrades' to loot like there was no tomorrow. Now that the "tomorrow" is upon us, we're excusing them instead of calling for their head.

Una never see anything!

God bless you & all yours!!!

This your submission is why I no longer join issues with the wailers!!! No bueno, Ayaf tire.

They argue to suit their bias without bearing in mind that oil ain't making money & don Fortunato done fritter away family savings on his failed reelection bid!

You can't eat your cake & have it!!!

Our current CBN governor's methods of "defending" the naira brought us here. The facts on the ground clearly make nonsense of his restrictive forex policies. What does not work simply doesn't work!

brunofarad:
So what's the wisdom behind this

Did you read that thing at all? If you truly read it, you won't ask that question.

Students abroad go hear am

Emekamex:
Students abroad go hear am

Their politico fathers now have no choice but to improve the educational system..

90% of them are being financed through public funds anyway, so......

BTW, I have folks schooling abroad too!!

Rolings:

Let's see where the policy will lead before condemning it. No one say you cannot pay $1500 for your professional exam just source the dollars through the proper channel .

Could you please advise him and thousands of other victims (from the CBN response above) what the proper channel of sourcing $ is.

I don't engage in E fights
TOO BIG FOR THAT

wadetaw202:


Did you read that thing at all? If you truly read it, you won't ask that question.