In his inaugural speech, President Bola Tinubu confirmed that his administration would work towards a unified exchange rate. What will this mean for the operations of virtual cards in the country?
President Bola Tinubu’s plan to unify the country’s exchange rate—following advice from the World Bank and the International Monetary Fund (IMF)—is now the subject of several conversations. Experts say the current exchange rate regime has made international payments difficult. Yet, moving to a single, market-determined exchange rate will affect virtual card operations in Nigeria.
What will happen to virtual cards?
Uzoma Dozie, CEO/Founder of Sparkle Nigeria, says he doesn’t foresee any significant impact on the virtual card businesses in the country, considering the current operational landscape and existing policies. “However, operational costs for Naira-dominated virtual card businesses with a foreign exchange component may experience increased operating costs,…