Fidelity joins other Nigerian banks in limiting dollar spending

Fidelity Bank has joined counterparts, Zenith Bank and Guaranty Trust Bank (GTB), in lowering dollar spending limit on debit cards.

Reuters reports that Fidelity Bank has told customers that it would impose a new limit of $1,000 from April 1, down from a previous amount of $3,000.

In 2015 after a drop in crude oil prices resulted in reduced forex earnings for the country, banks had adopted the strategy of dollar rationing to preserve forex.

In March, Zenith Bank and Guaranty Trust Bank had sent notices to customers notifying them of lowered daily international spending limits of $300.

While Zenith Bank lowered monthly limits to $1,000, Guaranty Trust Bank lowered monthly limits to $500.

Banks like Stanbic IBTC currently maintain a monthly withdrawal limit of $3,000 with an ATM withdrawal limit of $300.

The Central Bank of Nigeria (CBN) had adjusted the value of the naira on the foreign exchange market in response to market pressure.

CBN, amid the economic situation caused by a drop in the crude oil price to below $30 per barrel, seeks to ensure that the financial market of the country does not suffer a great loss.

It also seeks to conserve dollar reserves.

Editor’s note: This story has been corrected to reflect that Stanbic IBTC has not lowered dollar spending limit on debit cards