• Friday, March 29, 2024
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Naira weakens to N412/$ as banks cut spending limit of International transactions

Naira

The foreign exchange pressure continued on Wednesday as dollar was sold as high as N412 at the black market.

This represents N2 depreciation or the naira, compared with N410 sold on Monday. Black market operators deserted their business areas due to the lockdown instruction by President Muhammadu Buhari as part of measures to combat spread of coronavirus.

However they are collaborating with operators in other states like Kano that are not affected with the lockdown.

On the other hand, Nigerian banks have cut the spending limit for International transactions by about 66.7 percent from $3,000 to $1,000.

The banks that have so far reduced their spending limit include Fidelity Bank to $1,000, GTBank to $1,500, Zenith Bank to $1,000, and Providus Bank to $1,000.

In a notice to its customers, Fidelity Bank Plc said, “Please be informed that the spending limit on your Fidelity Naira Visa and MasterCard is now $1,000 monthly for international transactions. This means your card can be used on POS, WEB & ATM for a cumulative transaction value of up to $1,000 monthly. However, your daily ATM withdrawal limit is pegged at $300”.

The Central Bank of Nigeria on March 21, 2020 devalued the Naira and pegged official exchange  at N360 per dollar and the rate at investors and Exporters (I&E) at N380/$.

Godwin Emefiele, governor of the CBN said the exchange rate of N380 per dollar at the Investors and Exporters forex window was not a devaluation but an adjustment.