Zenith bank pegs international withdrawal on naira cards amid dollar crunch

It appears that Zenith Bank, a major commercial bank in Nigeria, has introduced a new policy that limits international withdrawals on Naira cards due to the current dollar crunch in the country.

Here's a breakdown of the situation:

Background: Nigeria is currently facing a severe dollar shortage, which has led to a scarcity of foreign exchange (FX) in the country. This has resulted in a significant depreciation of the Naira against major currencies like the US Dollar.

New Policy: In response to the dollar crunch, Zenith Bank has introduced a new policy that limits international withdrawals on Naira cards. This means that customers who use their Naira cards to make international transactions will now face restrictions on the amount they can withdraw.

Details of the Policy: According to reports, Zenith Bank has set a daily limit of $100 (approximately N40,000) for international withdrawals on Naira cards. This means that customers can only withdraw up to $100 per day when using their Naira cards abroad.

Impact: This new policy is likely to affect many Nigerians who rely on their Naira cards for international transactions, such as traveling abroad or making online purchases. The restrictions may also lead to increased costs for customers who need to make larger transactions, as they may be forced to use alternative payment methods or convert their Naira to Dollars at unfavorable exchange rates.

Reasons for the Policy: The bank has not explicitly stated the reasons for the policy change, but it is likely that the decision was made to conserve foreign exchange and mitigate the impact of the dollar crunch on the bank's operations.

Other Banks: It is unclear whether other Nigerian banks have also introduced similar policies, but it is likely that some may follow suit in response to the dollar crunch.

Conclusion: The new policy by Zenith Bank is a response to the current dollar crunch in Nigeria, which has led to a scarcity of foreign exchange. While the policy may cause inconvenience for some customers, it is likely intended to conserve foreign exchange and mitigate the impact of the dollar crunch on the bank's operations.