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HomeTop NewsNigeria's naira hits record low of N585 to dollar on parallel market

Nigeria’s naira hits record low of N585 to dollar on parallel market

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Nigeria’s naira hit a record low of N585 per dollar on the black market on Friday, as dollar demand rose following this week’s suspension of individual card withdrawals abroad by commercial banks.

The currency was quoted at N585 naira per dollar on the unofficial market, weaker than N583 naira in the previous session, traders said.

It traded within a range of 413 to 417 naira on the official market.

Last week, some banks notified their customers on fresh restriction measures on the use of debit card to make payment on forex exchange purchases.

Three of Nigeria’s major lenders, namely, First Bank, Zenith Bank and United Bank for Africa announced the suspension of the use of debit card to access foreign exchange or restrict the amount they can withdraw, using their debit cards.

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The UBA Plc stopped the use of naira card to withdraw dollars from Automated Teller Machines outside the country or make international payments at Point of Sale devices.

Zenith Bank Plc said it had “temporarily suspended” the same transactions on ATM and PoS devices. It cut spending limit on web transactions using naira cards to $20 a month from $100, citing “today’s economic realities” in a note to customers.

First Bank of Nigeria Ltd. set the limits on its naira Mastercard and naira credit card to $50 monthly.

The reason given by the UBA on its stoppage of the use of naira debit cards was based on its efforts to cut down on those transactions that would require it to start looking for foreign-exchange.

Sources said the naira may hit the N600 to the dollar mark soon if the CBN fail to intervene in the forex market as soon as possible.

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