The Central Bank of Nigeria, CBN through its Director, Monetary Policy Department Mr. Moses Tule, has explained that the decision of Deposit Money Banks to place a restriction on the use of ATM cards abroad on bank customers is due to scarcity of foreign exchange.
The Apex Bank has further explained that it is in support of the restriction as it would assist in reducing pressure on the Naira.
Mr Moses Tule while speaking to pressman in Abuja said:
“The limitation on the use of debit or credit cards outside the country was not a limitation that was placed by the CBN. They were restrictions that Deposit Money Banks placed because they have to settle whatever transactions you make with your debit cards with their corresponding banks in foreign currency. And if the banks do not have the foreign currency to do that, then you create a liability problem for them.”
Speaking on the way forward, he added that “Given the level of current flow into the reserves, by the time we meet these priority areas, you will discover that people who are using their debit cards overseas for shopping can never be on the priority list.”