CBN Warns Banks Against Rejecting US Dollar Denominations, Threatens Sanctions
The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks (DMBs) regarding their refusal to accept old and small denominations of United States Dollars.
In a circular signed by Mr. Mohammed Solaja, Acting Director of the Currency Operations Department at CBN, the apex bank expressed dissatisfaction with reports of continued rejection of these dollar notes, labeling such behavior as unacceptable.
“Kindly be reminded that the Central Bank of Nigeria circular referenced COD/DIR/INT/CIR/001/002 and dated 9th April 2021, which explicitly frowned at this selective acceptance of deposit, is still in force and must be adhered to and complied with by all relevant parties.
“For the avoidance of doubt and further guidance on the circular, the content is hereby reissued as follows for strict compliance: All DMBs /authorized forex dealers should henceforth accept both old series and lower denominations of United States Dollars that are legal tender for deposit from their customers. The CBN will not hesitate to sanction any DMB or authorised forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular partly read.
Meanwhile, The CBN warned that any DMB or authorized foreign exchange dealer found refusing old series or lower denominations of US Dollar bills from customers would face sanctions.
Furthermore, it advised against defacing or stamping US banknotes, as such markings could lead to authentication failures during processing and sorting.
