Naira Crashes Against Dollar, Pounds, Euro After CBN Places Limits on Cash Withdrawals

Naira Crashes Against Dollar, Pounds, Euro After CBN Places Limits on Cash Withdrawals

  • Nigerian currency, the Naira, has crashed in value against US dollars, British pounds and Euro
  • This happened after CBN announced limits on cash withdrawals at ATMs, banks
  • The cash limits include weekly and daily withdrawals and also costs for anyone who wants more

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The Naira fell in value on Tuesday, 7 December 2022, across FX markets after the Central Bank of Nigeria (CBN) introduced a new cash withdrawal limit policy. had earlier reported that the CBN announced that the cash withdrawals limit for individuals at N100,000 while the maximum for business organizations is N500,000 per week.

The new policy also placed 5% processing charge for sums over the maximum. with a 10% surcharge for sums above the limit for organisations.

CBN cash withdrawal limit, Naira
Emefiele announces new withdrawal limit Credit: @cbn
Source: Getty Images

Limits were also imposed on Automated Teller Machines (ATMs), with a daily maximum of N20,000 and instructions to load only N200 and low Naira denominations.

Within hours of the policy announcement, the Naira's value fell across all foreign currency markets, including peer-to-peer (P2P), the parallel market, and the official Investors and Exporters (I&E) window.

Naira to dollar exchange rates

In the parallel market, the local currency fell by N5 versus the US dollar to settle at N730/$1 compared to the previous day's value of N725/$1.

Also, in the P2P FX window, the Naira was trading at N760/$1 vs N739/$1 the previous day, indicating a N21 decrease.

In the I&E window, the Naira fell against the dollar by 47 Kobo, or 0.11 per cent, to trade at N445.80/$1, compared to N445.33/$1 the previous day.

Naira exchange rate to other currencies

Similarly, the CBN on its website reports that Naira plunged against the Pound Sterling on Tuesday, 6 December 2022, by N4.82 to settle at N547.15/£1 versus N542.33/£1.

Also, against the Euro, it fell by N5.80 to close at N470.78/€1 compared with the previous day’s rate of N464.98/€1.

NCC reveals list of mobile phones Nigerians must not buy or use

In another report, has revealed that the Nigerian Communications Commission (NCC) released a list of unapproved phones that Nigerians are not permitted to purchase or use.

The commission also advised against using the mentioned gadgets and warned against counterfeits.

Most of the phones listed are available in the market and can be purchased for as little as N2,000.


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