CBN to sanction banks, BDCs, others over rejection of old dollar notes

The Central Bank of Nigeria (CBN) has issued a directive mandating all Deposit Money Banks, authorised forex dealers and the public to accept old series and lower denominations of United States Dollar (USD) notes from their customers.

According to the bank, the move comes in response to consumer market intelligence revealing continued rejection of these denominations by banks and authorised forex dealers.

In a circular dated 27 June 2024, signed by Solaja Olayemi, acting director of the currency operations department, the CBN reminded all relevant parties of a previous circular issued on 9 April 2021, which explicitly discouraged the selective acceptance of deposits.

The CBN reiterated that this policy remains in force and must be strictly adhered to.

“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 authorized forex dealers.

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“Kindly be reminded that the Central Bank of Nigeria (CBN) 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,” it said.

The circular also emphasised the CBN’s resolve to enforce compliance.

The bank warned that it would not hesitate to sanction any commercial bank or authorised forex dealer that refuses to accept old series or lower denominations of US Dollar bills from customers.

It also advised all authorised forex dealers to refrain from defacing or stamping US Dollar banknotes, as such notes tend to fail authentication tests during processing and sorting.