The Central Bank of Nigeria (CBN) announced it will sanction Deposit Money Banks (DMBs) and authorized forex dealers that refuse to accept old and lower denominations of United States Dollar (USD) bills from customers.
In a circular dated June 27, 2024, signed by Solaja Mohammed-J Olayemi, Acting Director of Currency Operations, the CBN emphasized the mandatory acceptance of these notes.
The new circular references an earlier directive, COD/DIR/INT/CIR/001/002, issued on April 9, 2021, which explicitly prohibited the selective acceptance of deposits and required full compliance from all relevant parties.
The CBN expressed regret that consumer market intelligence revealed ongoing rejection of old/lower denomination USD bills by DMBs and other authorized forex dealers.
Based on the earlier directive, all DMBs and authorized forex dealers are now required to accept both old series and lower denominations of USD bills recognized as legal tender, ensuring customers can deposit these bills without unnecessary rejection.
The CBN declared its readiness to impose sanctions on any DMB or authorized forex dealer found refusing to accept old series or lower denominations of USD bills from customers. This measure aims to enforce compliance and ensure uniformity in handling foreign currency deposits.
The CBN also cautioned authorized forex dealers against defacing or stamping USD banknotes, noting that such actions often cause the notes to fail authentication tests during processing and sorting, leading to further complications.
