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

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.