3 Banks suspend ATM card usage in foreign countries.

On Friday, GT Bank, Standard Chartered and Stanbic IBTC instituted the suspension of ATM card(s) of users in foreign countries in light of the increasingly appalling state of the Nigerian economy and exchange rate.

The three banks also suspended online transactions priced in foreign currencies. This means that customers of the banks will no longer be able to use their debit or credit cards to make online transactions that are denominated in Dollars, Euros, Pounds and other foreign currencies.

In a note to its customers on Friday entitled: ‘Suspension of international transactions on Naira debit cards’, Standard Chartered Bank Nigeria said, “Please be informed that effective immediately, your naira denominated debit cards will no longer be functional for international transactions.

“This is due to the current volatility in the foreign exchange market. Your Naira-denominated debit cards can only be used for local transactions at Point of Sale terminals, Automated Teller Machines and online for Nigerian retailers.”

The decision by some banks to suspend overseas ATM card services and online forex transactions came barely one week after the CBN, through the Bankers’ Committee, raised concerns about what it called the indiscriminate and suspicious manner in which some bank customers were spending dollars and other foreign currencies abroad through their naira debit cards.

What effect shall this have on Nigerian students who live overseas and depend on their parents for resources? Share your take by tweeting @takingCustody.