Categories: BusinessOn the Go

Dollar crunch? Zenith Bank adopts 2015 strategy, sets withdrawal limit

Oluseyi Awojulugbe

Zenith Bank has sent a notice to its customers that their naira cards now have an international withdrawal limit of $1,000 a month.

The bank also said daily limits for withdrawals outside Nigeria have been set at $300.

This was the method adopted by banks in 2015 at the onset of the dollar crunch which was caused by a drop in crude oil prices.

Nigeria’s economy slipped into a recession in 2016.

“Please be informed that the monthly international spend limit for your Zenith Bank naira card has been reviewed to $1,000,” the notice read.

“Your card can be used for ATM withdrawals outside Nigeria ($300 daily limit), web and point of sale (POS) payment.”

It is expected that other banks might follow Zenith’s example as a result of falling oil prices.

Crude oil prices recorded a sharp decline after a meeting between the Organisation of Petroleum Exporting Countries (OPEC) and its allies ended with Russia declining to join additional cuts proposed by OPEC.

Saudi Arabia also announced its decision to increase daily output and offer discounts to its customers.

This caused panic in Nigeria’s forex market with the naira trading at N400 to the dollar.

Commenting on the situation, Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said unscrupulous market speculators were responsible for the panic.

He said the demand for dollar was unexplained as manufacturing firms in China and Europe are closed as a result of the coronavirus outbreak.

Recent Posts

  • Coronavirus Watch
  • On the Go

NCDC releases guidelines for elections, encourages politicians to hold virtual rallies

The Nigeria Centre for Disease Control (NCDC) has released guidelines for elections being conducted in Nigeria amid COVID-19 pandemic. In…

July 6, 2020 7:27 PM
  • Business
  • On the Go

Lamido Yuguda assumes duty as SEC DG

Lamido Yuguda has assumed office as the director-general of the Securities and Exchange Commission (SEC). According to a statement by…

July 6, 2020 7:22 PM
  • Inside Nigeria
  • On the Go
  • Ondo
  • Top Stories

Ex-SSG: I told Fayemi I would spit on Akeredolu’s face… he’s the worst Ondo governor ever

Ifeadayo Abegunde, former secretary to the Ondo state government, has described Rotimi Akeredolu as the worst governor in the history…

July 6, 2020 7:13 PM
  • On the Go
  • The Nation

PHOTOS: Journalist launches 30-day protest over state of Ota road

Tunde Opeseitan, a journalist, has declared 30 days of activism to protest the deplorable state of Ojuoore-Atan-Obasanjo/Estate Road in Ota,…

July 6, 2020 6:36 PM
  • International
  • On the Go

Ghana directs agencies to give priority to locally assembled vehicles

Nana Akufo-Addo, the president of Ghana, has mandated all government agencies to ensure that locally assembled cars are given preference…

July 6, 2020 5:45 PM
  • On the Go
  • Top Stories

DSS blocks journalists from venue of Magu’s interrogation

Operatives of the Department of State Services (DSS) have blocked journalists from the banquet hall of the presidential villa, where…

July 6, 2020 5:26 PM