With looming economic meltdown and the axieties caused by the coronavirus pandemic, Nigerian banks are now limiting the amount individuals can withdraw with their debit cards while abroad.
Our random checks with banking authorities this week, have revealed that, leading banks who also lead other banks in managing transcations of customers in foriegn curriencies, took the decision, in an effort to ease foreign currency settlement risk.
The central bank is battling to conserve dollar reserves that are down 16 per cent from a year ago after the coronavirus outbreak triggered a sharp fall in the price of oil, Nigeria’s main export. The oil price plunge has also prompted foreign investors to shed Nigerian assets.
Fidelity Bank said it would impose a new limit of $1,000 from April 1, down from $3,000 previously, a senior executive told Reuters.
Other lenders — Zenith Bank and GT Bank — have lowered withdrawal limits for individuals while abroad. Stanbic IBTC Bank said it has pegged its daily limit at $300.
Such moves have previously been at the behest of the central bank, but it was not clear if the regulator was behind the latest action.
The naira has hit fresh lows on both the official and over-the-counter spot markets after the central bank devalued the currency last month and suspended forex sales to retail currency traders, due to the safety measures adopted against the COVID-19.