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Business News of Tuesday, 13 December 2022


Naira crashes against dollar, pounds, euro after CBN places limits on cash withdrawals

The photo used to illustrate the story The photo used to illustrate the story

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.

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.

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.

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.