Nigerian banks to limit debit card spending in but every other country to ease FX possibility

ABUJA, July 19 (Reuters) – Nigerian banks figuring out to lower the volume prospects can exhaust in but every other country the usage of debit playing cards on Monday, two lenders stated, as banks strive and limit foreign replace settlement possibility. The country is facing buck shortages thanks to the sharp fall in the sign of oil, Nigeria’s valuable export, and domestic banks are making an are trying to set a ways flung from transactions with hard currency. Stanbic IBTC Bank, the local unit of South Africa’s Popular Bank, stated this is in a position to perchance furthermore halve the spending limit for offshore card transactions to $500 per month from Monday and can limit cash withdrawals to $100. But every other high tier lender Zenith Bank stated this is in a position to perchance furthermore temporarily hunch the usage of debit playing cards in but every other country for cash withdrawals and slit the month-to-month spending limit in but every other country by greater than half to $200. “This overview is in accordance with this day’s economic realities,” Zenith stated in a look, advising purchasers to request pay as you dawdle buck playing cards. Different lenders — Ecobank and Constancy Bank — possess furthermore lowered withdrawal limits for fogeys while in but every other country. Such moves possess beforehand been on the behest of the central bank, but it used to be no longer certain if the regulator used to be late the most modern motion. The central bank didn’t respond to a request for squawk. The bank is battling to conserve buck reserves which would be down 19% from a yr ago. Closing week it depreciated the currency on the official market prompting the naira to weaken on the gloomy and over-the-counter method markets. Bankers told Reuters that it now takes greater than six months to settle foreign lines of credit rating. Nigeria is but to resume foreign replace sales to retail currency traders after it banned international shuttle as half of a lockdown measure to gradual the unfold of the coronavirus that has killed 778 other folks and infected greater than 36,000. Reporting by Chijioke Ohuocha; Bettering by Elaine Hardcastle

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