Guaranty Trust Bank (GTB) has lowered the international spending limit on its naira Mastercard to $100 a month.
This was contained in a notice sent to customers on Wednesday.
This development affects online, POS and ATM activities as the Mastercard can be used to complete all kinds of transactions including cash withdrawals, payments and purchases in Nigeria and abroad, across all channels.
“Dear customer, the monthly spending limit on your GTBank Naira Mastercard is now $100 for international transactions. Thank you for banking with us,” the notice read.
This development can be said to be the impact of foreign exchange on the Nigerian currency.
In a notice sent to its customers in September 2018, GTB pegged international monthly spending limit at $3,000 while daily ATM cash withdrawal had a limit of $300.
In another notice, the bank announced a downward review of the monthly spending limit from $3,000 to $1,500.
“We would like to inform you that the monthly spending limit on your GTBank naira Mastercard has been reviewed from $3,000 to $1,500 for your international online and POS transactions effective March 25, 2020” the notice read.
In March 2020, the spending limit dropped further as the bank announced a maximum of $500 monthly spending for international transaction.
“Dear customer, the monthly spending limit on your GTBank Naira Mastercard is now $500 for international transactions,” it read.
At the time, Zenith Bank had also announced a similar course of action, setting international withdrawal limit at $1,000 a month.
The bank had also set daily limits for withdrawals outside Nigeria at $300.
This was the method adopted by banks in 2015 at the onset of the dollar crunch which was caused by a drop in crude oil prices, leading to the country’s recession in 2016.
Since the coronavirus pandemic crushed crude oil prices in 2020, Nigeria’s economy has battled several shocks leading to series of developments, including the slashing of the national budget.
– The Cable.