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THE shortages of US dollars has prompted some of the top banks in Nigreia to limit debit card spending abroad. Two banks said the plans will help mitigate against foreign currency settlement risk.
Stanbic IBTC Bank said that it would cap spending limit for offshore card transactions to US$500 per month while cash withdrawals will be capped at US$100.
On the other hand, Zenith Bank announced the suspension of debit card use abroad for cash withdrawals albeit temporarily, while capping monthly spending limit abroad to US$200.
Other banks that have lowered the withdrawal limits for individual abroad include Ecobank and Fidelity Bank.
A sharp drop in oil prices and exports, which accounts for 90 percent of the country’s foreign exchange earnings, has left Nigeria with a dollar shortage.
The Covid-19 pandemic has deteriorated the situation further due to restriction on international travel. Central Bank of Nigeria devalued the official exchange rate in early July to 381 naira per US$1 from 360.
This has seen the Naira weaken on both the official and parallel black markets. For instance, on Monday in the official spot market, the naira exchanged at 389 per dollar, while on the black market it exchanged at 472 per dollar. – Reuters
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