Diaspora Nigerians remit $60.22bn in three years
Forex

Adebayo Obajemu

Nigerian banks have started sending notices to customers about a lowering in the spending limits for their naira denominated debit cards used for paying for transactions abroad.

Most of the messages are about debit cards powered by Master Card.

In one of such notices gleaned by this newspaper, it reads: “Dear Customer effective 16 August 2020, your Naira Mastercard International will be reduced from $500 to $300 monthly.”

Recall that some  bank have also reduced their monthly spending limits to as low as $100.

Nigerians largely depend on their debit cards to pay for online transactions that are billed in US dollars. The banks debit their naira account with the prevailing exchange rate.

It should be noted that Nigeria is currently experiencing currency shortages as official forex sales to the BDC segment remain suspended.

Forex transactions in the I&E Window has plummeted to under $1 billion monthly. The parallel market has been the go-to market for price guidance and transaction for companies looking to sell at a price higher than the official market rate.

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