Stanbic IBTC has just announced that is cancelling all foreign currency denomination on its Naira debit and credit cards.
This means from tomorrow, 18th of October, 2016, all Stanbic IBTC bank customers will no longer be able to buy anything online in foreign currency.
In a text message circulated to all its customers, the bank said:
“Dear Customer, kindly note that effective 18 October 2016 your ability to carry out transactions priced in foreign currency using our Naira debit and credit cards will be suspended”.
“If you wish to conduct international card transactions after that date, you can request for a USD card (Debit or Prepaid) from any of our branches . We apologize for any inconvenience in this regard. For enquiries, please call 014222222”.
Stanbic IBTC did not disclose when it will lift the ban.
The stoppage of foreign currency transactions on cards is just another sign that Nigeria’s Forex drought is getting worse by the day.
The bank will be loosing alot of revenue from fees and commissions charged on such transactions. This might also become a trend among banks who are looking at freeing themselves from pressures to settle Forex transactions after customers pay for items.
Another dimension is the sudden notice given to such serious move. The bank ought to have provided enough notice so that all its customers especially SMEs can find alternative means of paying for items in foreign currency.
The drought of Forex has contributed to the increase in inflation rate. Yesterday, the National Bureau of Statistics, NBS reported that Nigeria’s headline inflation rose from 17.6% in the month of August to 17.9% in September. Cost of mostly imported goods and services have almost tripped, while locally made goods have also seen serious inflation as a result of Forex droughts in importing need raw materials for local production.
