The Digest:
An economic revival for international payments is underway. After years of suspension, two Nigerian commercial banks, UBA and Wema Bank, have announced the resumption of international transactions on their naira cards. This significant development comes amidst improved foreign exchange liquidity, as reported by The Nation.
Key Points:
- United Bank of Africa (UBA) and Wema Bank have recommenced international transactions on their Naira cards.
- This development follows about three years of suspension by many Nigerian banks due to FX scarcity.
- UBA's Premium Naira Cards (Gold, Platinum, World variants) are now enabled for global payments, online shopping, POS, and ATM transactions.
- Wema Bank customers can now "pay in dollars" with their naira Mastercards on various international platforms like Amazon and Netflix.
- The shift is attributed to improved liquidity in the foreign exchange (FX) market.
- Other contributing factors include a moderating premium on parallel market rates, naira appreciation, and increased diaspora remittances.
- Restored confidence in FX management by the federal government and CBN, along with cleared FX backlogs, also influenced the decision.
Sources: The Nation, The Cable, UBA
