What CBN said about banks, currency dealers rejecting old series and smaller dollar notes

• The Central Bank of Nigeria (CBN) has warned commercial banks against rejecting old series and smaller dollar notes
• The bank said any bank or authorized dealer found rejecting the notes would be sanctioned
• It also warned the banks and dealers against defacing the smaller notes, saying they fail authentication tests during sorting

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Central Bank of Nigeria (CBN) has threatened to sanction commercial banks that reject the old and small denominations of the US dollar.

The apex bank said in a circular signed by its Director of the Currency Operations Department, Ahmed Umar, that its market intelligence revealed the continued rejection of the affected dollar notes, describing it as unacceptable.

Governor of the Central Bank of Nigeria (CBN) warns banks and currency dealers against rejecting old dollar notes Credit: CBN
Source: Getty Images

CBN threatens to wield the big stick

CBN said:

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“All DMBs/authorized dealers should henceforth accept both old series and lower denominations of the United States Dollars (USD) that are legal tender for the deposit for their customers.”

The bank said it would not hesitate to sanction DMBs or authorized dealers who refuse to accept old series of or lower denominations of US dollar bills from their customers.

Vanguard reports that the bank warned dealers against defacing the dollar bills, stating that such bills fail authentication tests during processing and sorting.

CBN directs banks to deposit excess dollars in its offices

A previous report by Legit.ng disclosed that CBN has issued new guidelines to Deposit Money Banks (DMBs) regarding depositing foreign currency at its branches. 

This directive was contained in a circular issued by Mohammed Solaja, the Director of Currency Operators, and posted on the bank’s website on Friday, June 28. 

According to CBN's new directive, each bank can deposit up to $10 million in $100 and $50 notes daily. These deposits will be made exclusively at the CBN branches in Abuja and Lagos. 

CBN moves to address increasing dollar demands

The move aims to address the increasing demand by DMBs to deposit their forex cash with the CBN for onward credit to their offshore accounts with correspondent banks. 

The circular, with reference number COD/DIR/INT/CIR/001/016, also mandates that banks notify the CBN in writing at least three working days before making such deposits. 

For smaller denominations, such as $20 notes and below, the maximum daily deposit limit is $1 million. Banks announce new requirement to buy dollars Earlier,

Nigerian banks released a fresh requirement to customers looking to buy foreign currencies.

CBN abandons Price Verification Portal for cargo clearance

Legit.ng earlier reported that The Central Bank of Nigeria (CBN) announced on Wednesday, June 26, 2024, that it will stop its Price Verification System (PVS) Portal beginning July 1, 2024.

The decision comes amid recent developments in the Nigerian foreign exchange market.

The apex bank announced in a circular issued by W.J. Kanya, the acting director of the trade and exchange department, citing a previous circular dated August 17, 2023.

Source: Legit.ng