Banks limits dollar spending over dwindling dollar reserves

Nigerian Banks are cutting limits for dollar spending overseas by their customers to avoid hitches that may arise from foreign currency settlement as the Central Bank of Nigeria intensify efforts to shore up dollar reserves.

Fidelity bank disclosed it would reduce its limit from $3,000 to $1,000 starting from 1st April.

Providus Bank, one of the recently licensed commercial banks, also announced to customers it would peg its limit at $1,000.

Last week, Nigeria’s biggest lender by market capitalisation, Guaranty Trust Bank lowered its threshold from $3,000 to $1,500 while Zenith Bank followed suit, cutting its to $1,000 from $3,000.

Stanbic IBTC has also pegged the maximum daily withdrawal on its card at $300.

According to a report by Reuters, CBN’s dollar is at 16% lower than they were a year ago after COVID-19 spurred a free fall in the price of oil, Nigeria’s principal foreign exchange earner.

In the month that just went by, the apex bank issued a circular, directing oil and gas firms in the country to sell forex to no one else but the bank.

The Naira reached its record low level at the parallel and over-the-counter markets after the Central Bank of Nigeria weakened the Naira and suspended sales of forex to street Bureaux de Change.