The Central Bank of Nigeria (CBN) has said it will sanction Deposit Money Banks (DMBs) and authorised forex dealers that reject old and lower denominations of United States Dollar (USD) bills from customers.
The apex bank in a circular dated June 27, 2024, signed by Solaja Mohammed-J Olayemi, acting Director of Currency Operations, emphasised the mandatory acceptance of such notes
The new circular referenced an earlier directive, COD/DIR/INT/CIR/001/002, issued on April 9, 2021, which explicitly prohibited the selective acceptance of deposits and required all relevant parties to comply fully.
It, however, expressed regrets that the outcome of the consumer market intelligence conducted by the Bank revealed the continued rejection of old/lower denominations of United States (US) Dollar bills by Deposit Money Banks (DMBS) and other authorised forex dealers.
It said based on the earlier directive, all Deposit Money Banks and authorised forex dealers are now required to accept both old series and lower denominations of USD bills that are recognised as legal tender, to ensure customers can deposit these bills without facing unnecessary rejection.
The CBN declared its readiness to impose sanctions on any DMB or authorised forex dealer found refusing to accept old series or lower denominations of USD bills from customers.
The measure, it said, is intended to enforce compliance and ensure uniformity in handling foreign currency deposits.
The CBN also cautioned authorised forex dealers against the practice of defacing or stamping USD banknotes, pointing out that such actions often result in the notes failing authentication tests during processing and sorting, causing further complications.
