UBA, Wema, other Nigerian banks finally resume foreign transaction in naira

• Wema Bank and UBA person announced the resumption of overseas transactions connected their Naira cards aft a three-year hiatus
• The determination follows improved liquidity successful the overseas speech marketplace and reduced arbitrage opportunities
• Other banks, specified arsenic Standard Chartered and First Bank of Nigeria, had antecedently halted planetary transactions owed to the ongoing FX shortage

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Wema Bank and United Bank of Africa (UBA) person separately announced the resumption of overseas transactions connected their naira cards.

Nigerian banks announced that its customers tin present "pay successful dollars" utilizing their naira cards. Photo Credit: Contributor
Source: Getty Images

This came aft astir 3 years since galore banks stopped allowing overseas transactions utilizing Naira debit cards.

UBA, successful a caller notification to its customers, explained that the restart aligns with its continued dedication to providing creaseless and improved banking services.

“In enactment with our continued committedness to providing you with seamless and enhanced banking experiences, we are pleased to pass you that each UBA Premium Naira Cards, including Gold, Platinum, and World variants, are present enabled for planetary transactions,” the connection reads.“This means you tin present usage your Premium Naira Card for mundane payments, online shopping, POS, and ATM transactions crossed the world, with much easiness and flexibility. If you haven’t utilized your paper recently, now’s a large clip to rediscover the convenience and prestige that comes with being a UBA Premium cardholder.”

In a caller statement, Wema Bank besides announced that its customers can present "pay successful dollars" utilizing their naira cards.

“Your Wema Naira Mastercard conscionable went global! Now you tin pay successful dollars on each your favourite planetary platforms: Amazon, eBay, AliExpress, Netflix, Spotify, YouTube,” the slope said.

The Cable reported that the determination by these banks to reactivate their naira cards for planetary transactions was bolstered by accrued liquidity successful the overseas currency (FX) market, according to Ayokunle Olubunmi, caput of fiscal institutions ratings astatine Agusto & Co.

“The moderating premium connected the parallel marketplace transactions and the reduced arbitrage opportunities are besides liable for the decision,” helium said.

A fig of different banks likewise temporarily halted planetary transactions connected ATMs and POS channels betwixt July 2022 and January 2023 owed to the ongoing FX shortage, which endangered the viability of important economical sectors.

Standard Chartered Bank halted planetary transactions connected its Naira Visa debit paper successful July 2022. On September 21, 2022, First Bank of Nigeria (FBN) besides announced that it would halt allowing overseas transactions utilizing its Naira Mastercard.

Photo Credit: Contributor
Source: Getty Images

FG finds solution to speech complaint concern

Legit.ng reported that a strategical task superior effort has been launched by Nigeria and Japan to supply Naira-denominated financing to high-growth firms.

This strategy seeks to connection semipermanent concessional concern portion protecting companies against speech complaint concerns.

To implicit the fund's framework, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, met with representatives from the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA) successful Abuja.

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Source: Legit.ng