Banks in Nigeria to Restrict Debit Card Spending Abroad to Reduce FX Risk
Banks in Nigeria are set to reduce the amount of money which customers abroad can spend using debit cards starting on Monday, as banks attempt to reduce foreign currency settlement risk.
This was revealed by lenders. The quick fall in the price of crude oil which forms bulk of Nigeria’s export has caused dollar scarcity in the country forcing banks to make effort to evade transactions with hard currency.
The local unit of South Africa’s Standard Bank in Nigeria, Standard IBTC Bank has revealed that from Monday, it will reduce to half the original spending limit for offshore card transactions to $500 per month, while withdrawals will be reduced to $100.
Zenith Bank equally said the use of debit cards abroad for cash withdrawals will be temporarily be p...