Nigerian banks droop card withdrawals overseas

ABUJA, March 14 (Reuters) – Nigerian banks have suspended particular person withdrawals with native debit playing cards overseas and toughened limits on on-line funds, bankers stated on Monday, after the central financial institution final month stated it might cease greenback gross sales to lenders this yr.

Business banks had been limiting the quantity people can withdraw with their debit playing cards whereas overseas to ease international foreign money settlement danger with the nation dealing with greenback shortages.

The central financial institution is battling to guard reserves which have dwindled because the coronavirus pandemic triggered a pointy fall within the value of oil, Nigeria’s foremost export. The oil value plunge additionally prompted international traders to shed Nigerian property.

Oil costs have since recovered and soared, however a backlog demand for international trade has dodged foreign money markets and the naira.

Stanbic Financial institution (IBTC.LG) stated it might lower limits for on-line purchases and funds by half to $50 from Monday “in response to financial realities” and droop money withdrawals. Every day limits have been pegged at $300 two years in the past.

Different lenders have adopted go well with. Zenith Financial institution (ZENITHB.LG) stated it might impose a brand new month-to-month restrict of $20 for on-line transactions, down from $100 beforehand.

Such strikes have beforehand been on the behest of the central financial institution, nevertheless it was not clear if the regulator was behind the newest motion.

The central financial institution stated final month it might cease industrial banks from sourcing {dollars} from its reserves in 2022. An identical ban positioned on trade bureaux in July brought on the naira to tumble to document lows on the black market.

Reporting by Chijioke Ohuocha
Enhancing by Mark Heinrich

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