Wema Bank has lifted the suspension of international transactions on its naira cards, following the floatation of the Nigerian forex market.
The bank, in a note sent to its customers on Friday, said it has imposed a $500 monthly limit on international transactions carried out on its naira cards.
The news comes as a relief to Nigerians, who are hoping that other banks will follow suit as soon as possible.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Nigerians have gone through a rough path carrying out international POS transactions, following the country’s FX crisis that compelled the central bank to introduce several restrictive policies to protect the naira.
Against this backdrop, restrictions on the dollar eventually closed every window of international transactions on naira Mastercard and Visa. Commercial banks began to announce the suspension of international POS and web transactions to their customers, leaving many, especially Nigerians running Small and Medium Enterprises (SMEs), stranded.
But following last month’s announcement by the Central Bank of Nigeria (CBN), removing control pegs around the naira, thereby collapsing multiple exchange rates into one, Wema Bank has taken the lead in resuming card-based cross-border transactions.
The bank said in the notice that customers can now enjoy seamless transactions and make international purchases using their naira cards.
“You can now use your Naira cards, including Mastercard, ALAT Mastercard, and Visa, for international spending. For your international transactions, you can enjoy up to $500 per month,” the notice reads.
“Here’s what you need to know:
Expanded Possibilities: The Naira card allows you the freedom to make international purchases, explore international online stores, and buy from your favorite international brands. You know what? The world is now at your fingertips!
“Monthly Limit: To provide you with enhanced security and control, there is a $500 monthly spending limit for international transactions. This allows you to manage your expenses responsibly while enjoying the benefits of international spending.
“Effortless Convenience: Your Naira card gives you the convenience of making payments in foreign currencies, eliminating the need for currency conversion or carrying excess cash. It’s a hassle-free and secure way to shop and transact abroad.”
Following the deregulation of the FX market, banks are now allowed to carry out dollar transactions using market-determined rates. On Friday, the exchange rate between the dollar and naira fell to its lowest ever at N803/$1 at the investor & exporter window.