The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions in the country, emphasizing that the continued rejection of older series and lower denominations of U.S. dollar notes will not be tolerated. The apex bank has threatened sanctions against banks that fail to comply with this directive.
In a circular dated June 27, 2024, and signed by the acting director of the currency operations department, Solaja Olayemi, the CBN highlighted its concern over the persistent refusal by some banks and authorized forex dealers to accept old and lower denomination U.S. dollar notes. This circular was recently made available on the CBN’s official website.
Addressed to Deposit Money Banks (DMBs), Bureau De Change (BDC) operators, and the general public, the circular stressed that this practice must cease immediately. The CBN’s directive follows findings from consumer market intelligence, which indicated that despite previous warnings, the rejection of these dollar notes persists.
“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 deposits, is still in force and must be adhered to by all relevant parties,” the circular stated.
The CBN reiterated that all DMBs and authorized forex dealers are required to accept both old series and lower denominations of U.S. dollar bills that are legal tender from their customers. Failure to do so will result in sanctions.
“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 authorized forex dealer who refuses to accept old series/lower denominations of U.S. Dollar bills from their customers,” the circular read.
Furthermore, the CBN cautioned authorized forex dealers against defacing or stamping U.S. dollar banknotes, noting that such actions cause the notes to fail authentication tests during processing and sorting.
This renewed warning follows a similar directive issued on April 9, 2021, by the then director of the currency operations department, Ahmed Umar.
The CBN’s latest directive is a reminder of its commitment to ensuring smooth and fair currency operations within the Nigerian financial system.
