GTBank Introduces $20,000 Spending Cap on Naira Debit Cards Amid FX Market Changes
- Guaranty Trust Bank introduces a $20,000 quarterly limit for international transactions with naira debit cards
- New exchange rate set at N1,381 per dollar reflects Nigeria's volatile foreign exchange market
- Customers face monitoring under the new policy, yet benefits remain compared to previous restrictions on spending
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Guaranty Trust Bank has introduced a quarterly spending limit of $20,000 for customers using its naira debit cards for international transactions, signalling another adjustment in the banking sector’s response to Nigeria’s evolving foreign exchange market.
The development was revealed in the bank’s latest foreign exchange update for international transactions, monitored by MarketForces Africa.
Source: Getty Images
According to the update, customers making international payments with naira debit cards will now be restricted to a cumulative quarterly spending threshold of $20,000.
The move comes as Nigerian banks continue to review their foreign exchange policies amid fluctuating exchange rates and growing demand for dollar-denominated transactions, MarketFores Africa reported.
New FX rate for international transactions
GTBank also disclosed that it would process dollar transactions for customers at an exchange rate of N1,381 per dollar. The lender noted that the rate reflects movements within Nigeria’s official foreign exchange market.
At the close of trading in the official window, the naira reportedly settled around N1,372 against the US dollar. However, checks on the bank’s mobile banking platform showed that FX sales to customers were quoted at approximately N1,350 per dollar.
The variation in rates highlights the dynamic nature of Nigeria’s FX market, where rates can shift across official windows, banking platforms, and market segments.
Bank says rates may change
In its notice to customers, GTBank stated that foreign exchange rates for international transactions remain subject to changes based on prevailing market conditions.
The lender emphasised that exchange rates could be adjusted periodically depending on liquidity levels, market demand, and broader economic realities affecting the naira.
The bank also reiterated that the newly introduced quarterly spending limit applies specifically to naira debit cards used for international payments, online purchases, subscriptions, and other foreign currency transactions.
Pressure on FX demand continues
The latest adjustment reflects continued pressure on Nigeria’s foreign exchange market as banks attempt to manage dollar demand while maintaining access to international payment services for customers.
Over the past few years, several Nigerian banks have repeatedly reviewed limits on naira cards, with some temporarily suspending international transactions due to FX shortages and rising volatility in the currency market.
Although conditions in the FX market have improved in recent months following reforms introduced by the Central Bank of Nigeria, lenders are still adopting cautious measures to manage exposure to dollar transactions.
What it means for customers
For many customers, the new quarterly cap means international spending through naira debit cards will now be closely monitored within a defined threshold.
The policy is expected to affect users who rely on their naira cards for international online shopping, tuition payments, subscriptions, travel bookings, and other foreign currency expenses.
Source: Getty Images
However, the $20,000 limit still represents a relatively high spending threshold compared to restrictions previously imposed by some Nigerian banks during periods of severe FX scarcity.
Industry watchers say the decision could help the bank balance customer demand for international transactions while managing foreign exchange liquidity more effectively in a volatile market environment.
CBN explains naira exchange rate performance
Legit.ng earlier reported that the CBN says the naira is not being artificially propped up, stressing that the stability witnessed recently is market-driven following reforms and increased liquidity.
This was revealed on Wednesday by Governor Olayemi Cardoso while briefing journalists in Abuja after the Monetary Policy Committee (MPC) meeting.
He pointed out that after the past two years' reforms of the foreign exchange market, the market had become much more transparent and market-driven.
Source: Legit.ng
