Nigerian banks have gradually resumed processing international transactions on customers Naira cards.
One of such examples is Wema bank who sent the update to customers on Friday.
In its circular, the bank disclosed that customers can now use their Naira Mastercards, ALAT Mastercards and Visa cards for international transactions with a $500 monthly limit.
International transactions on Naira cards were suspended by most banks in 2022, and the monthly spending limit was dropped to $20 monthly.
The Central bank of Nigeria had said the suspension was necessary as the Foreign Exchange market was pressured due to shortage in the country’s dollar supply.
Most Nigerians were left to bear the brunt of being unable to shop or renew subscriptions on digital platforms like Amazon, Netflix, etc as they relied on the Naira card for such transactions.
While monetary policy efforts in the country such as the unification of all segments of the Nigerian Forex market were expected to create a boost in FX supply, TechCity reported that many Nigerians were of the opinion that opening up naira cards for foreign transactions would be a more effective action.
With Wema bank breaking the Naira card jinx and being the first to increase spending limit from $20 to $500, other banks have also followed suit. Some GTBank customers have reported successful international payments.
Access Bank has also partnered with Remitly, an American Fintech, to allow its customers receive and deposit cash in dollars.
According to the Access bank, this service is available in all its branches across the country.
Now that the cards are being opened up by banks, the move is likely to make customers happy. However, whether it will have a significant impact on the forex rates is another matter entirely. Only time will tell how this measure will influence the exchange rate between the dollar and the naira.