The naira on Thursday closed at N278/$ at the autonomous market after deposit money banks cut the amount individuals can spend abroad.
The Central Bank of Nigeria (CBN) had advised domestic lenders during an industry meeting on Friday to limit usage of cards abroad by their customers based on their individual reserves and capacity to secure dollars, especially for those without foreign affiliates.
Consequently, naira weakened by N11 each or 4.15 and 4.12 percent against the dollar at the Bureau De Change (BDC) segment of the foreign exchange and parallel markets.
It closed at N276/$ compared with N265/$ the previous day at the BDC segment, while it closed at N276/$ as against N267/$ the previous day at the parallel market.
However, the local currency closed at N196.66 against the dollar at the inter-bank foreign exchange market.
According to Reuters report, this week, commercial banks in Africa’s biggest economy cut the amount individuals can spend abroad to $100 to $150 per day or $12,000 annually, down from the $50,000 set by the central bank in April, two banks said.
Wema Bank and Skye Bank said in a letter to customers that “the new limit takes effect immediately.” The regulator had in April cut the limit from $150,000.
The naira has been hitting lows among retail bureaux de change operators as oil prices fall and the central bank tries to curb demand to conserve its dwindling foreign reserves, which are down 14.6 percent year-to-date.
Individuals were putting more pressure on retail money exchange agents to source dollars, weakening the naira on the unofficial market, Aminu Gwadabe, the head of Nigeria’s bureaux de change association, told Reuters.
