Ifeanyi Onuba

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.

The Director, Monetary Policy Department, CBN, Mr. Moses Tule, who said these in Abuja while speaking with journalists, explained that the restriction 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 current be experiencing challenges meeting the overseas demand of their customers.

This, he added, would have caused huge liabilities in the balance sheet of the banks, thus affecting their operations.

Tule said much as the CBN sympathised with Nigerians for the sufferings they were 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.”

He said, going forward, the priority of the CBN would be to use the foreign exchange to settle matured Letters of Credit that had been opened for importation of petroleum products and other raw materials.

“Given the level of current flow into the reserves, by the time we meet these priority areas, [size=23pt]you will discover that people who are using their debit cards overseas for shopping can never be on the priority list[/size],” he added.

On the devaluation of the naira, Tule said President Muhammadu Buhari had, using the budget, given a policy direction on what the CBN should do, adding that “hard choices” would be taken next year by the bank.

He, however, failed to provide details of what he meant by hard choices.

He said, “If you read the budget speech of the President, there was one sentence there where he said we must make hard choices in 2016. The budget is designed to open the growth potential of the economy and the President has said we must make hard choices.

“As policymakers, we are going to make those hard choices so at the right time, the CBN will take the appropriate decisions that will strengthen the foreign exchange market.”

http://www.punchng.com/we-cant-reverse-atm-card-ban-abroad-cbn/

Interesting.
So the protest by students is futile

CoCoLav:
Interesting.
So the protest by students is futile

Yes, Exercise in futility indeed...

Banks have proposed using FX denominated cards, they should avail themselves of one...

The country is in severe economic straits... Tough measures are more than necessary..

A hard reality.

CoCoLav:
Interesting.
So the protest by students is futile

But we can't afford to leave them to hang. It is unjust. The sad thing is, children of politicians and the rich will not suffer. It is only the poor hardworking Nigerians who have gone to really study for a brighter future that will bear the stress.

Some Nigerian students survive on the N5,000, N10,000 etc their parents deposit into their accounts here. Some Nigerian lecturers running postgraduate survive on their salaries paid into their accounts back home.

It isn't only the students that should protest. And that protest was not even strong enough. Next year will be tough on them.

I feel sorry for students studying abroad

this admininstration set

repair the refineries and stop petroleum importations then this pressure on dollar will be reduce by 60%
what is hard there

Dymaco:
this admininstration set

repair the refineries and stop petroleum importations then this pressure on dollar will be reduce by 60%
what is hard there

- many likes for your post.

A refinery can be built under $1bn and it can be built under 3 years.

That will so much ease the pressure on dollars. Toothpicks and school fees isn't the major consumer of dollars.

Hmmmmm....

bloggers, how una wan take renew domain now... oya , lets switch to Payoneer Card...ot holla your friend in outside 9ja to pay for you

chuksbaby:
bloggers, how una wan take renew domain now... oya , lets switch to Payoneer Card...ot holla your friend in outside 9ja to pay for you

Ben Murray Bruce says it is a way to punish bloggers (social media activist) through the backdoor.

Although that may be taking it too far but he was so much for the masses in his post on the matter.

CPriest:
- many likes for your post.

A refinery can be built under $1bn and it can be built under 3 years.

That will so much ease the pressure on dollars. Toothpicks and school fees isn't the major consumer of dollars.

to tell u the truth.....
the refineries are 70% good but our leaders are politicising it. all these refinery can start operation b4 April if they stop politicising it

Dymaco:


to tell u the truth.....
the refineries are 70% good but our leaders are politicising it. all these refinery can start operation b4 April if they stop politicising it

Thought Buhari was going to work his magic.

Nigeria's HIV will turn to AIDs if they don't stop 'politicising' things. When the suffering goes beyond measure and public outcry turns to public law breakdown, they will know how hard life gets with silly leadership.

CPriest:


Ben Murray Bruce says it is a way to punish bloggers (social media activist) through the backdoor.

Although that may be taking it too far but he was so much for the masses in his post on the matter.

thats the country we find ourself.. there is always a way

they should get a dollar dominated credit card here now

warrenweste:
they should get a dollar dominated credit card here now

But how does the dollar debit card / credit card get funded please?

CPriest:


But how does the dollar debit card / credit card get funded please?

its more like a domiciliary account..u source for dollars locally and fund your card the bank charges you a maintenance/annual fee..thats all...firstbank,diamond,stanbic and co offers it...

[quote author=CPriest post=41415094][/quote]


im just explaining that its more like a dorm account...and they do allow it you can find out from your bank...the 2.5%interest everymonth is just the bad side