Breaking News
Investing Pro 0
⚠ New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Nigerian banks to limit debit card spending abroad to ease FX risk

Forex Jul 19, 2020 12:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
USD/NGN
+0.14%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SBKJ
+0.80%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETI
-2.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FIDELIT
+1.30%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IBTC
+0.15%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ZENITHB
+1.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Chijioke Ohuocha
ABUJA, July 19 (Reuters) - Nigerian banks plan to reduce the
amount customers can spend abroad using debit cards on Monday,
two lenders said, as banks try to limit foreign currency
settlement risk.
The country is facing dollar shortages because of the sharp
fall in the price of oil, Nigeria's main export, and domestic
banks are trying to avoid transactions with hard currency.
Stanbic IBTC Bank IBTC.LG , the local unit of South
Africa's Standard Bank SBKJ.J , said it will halve the spending
limit for offshore card transactions to $500 per month from
Monday and will limit cash withdrawals to $100.
Another top tier lender Zenith Bank ZENITHB.LG said it
will temporarily suspend the use of debit cards abroad for cash
withdrawals and cut the monthly spending limit abroad by more
than half to $200.
"This review is in response to today's economic realities,"
Zenith said in a notice, advising clients to request prepaid
dollar cards.
Other lenders — Ecobank ETI.LG and Fidelity Bank
FIDELIT.LG — have also lowered withdrawal limits for
individuals while abroad.
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 central bank did not respond to a request for
comment.
The bank is battling to conserve dollar reserves that are
down 19% from a year ago. Last week it depreciated the currency
on the official market NGN= prompting the naira to weaken on
the black and over-the-counter spot markets. Bankers told Reuters that it now takes more than six months
to settle foreign lines of credit.
Nigeria is yet to resume forex sales to retail currency
traders after it banned international travel as part of a
lockdown measure to slow the spread of the coronavirus that has
killed 778 people and infected more than 36,000.


Nigerian banks to limit debit card spending abroad to ease FX risk
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email