CBN to sanction banks, BDCs rejecting old dollar notes

The Central Bank of Nigeria (CBN) has threatened to sanction banks and other foreign exchange dealers that refuse to accept old series/lower denominations of U.S. dollar bills from customers.

According to a recent circular issued by the CBN, the Bank had found instances of continued rejection of old and lower denominations of dollar notes, which had been condemned in an earlier circular issued in 2021.

“Kindly be reminded that the Central Bank of Nigeria circular referenced COD/DIR/INT/CIR/001/002, 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 stated.

The circular, signed by Solaja Mohammed Olayemi, Acting Director, Currency Operations Department, further stated that the CBN “will not hesitate to sanction any DMB or authorised forex dealers who refuse to accept old series/lower denominations of US dollar bills from customers.”

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The CBN also urged all forex dealers from stamping dollar bills that fail authentication tests during sorting.

“All authorised forex dealers are advised to desist from defacing/stamping US Dollar banknotes as such always fail authentication test during processing/sorting,” it said.

In April 2021, the CBN issued a circular, directing all banks and authorised forex dealers to accept both old series/lower denominations of US dollars that are legal tender for deposits from their customers.

This was due to complaints from people on the rejection of old/ lower denominations of U.S. dollar bills by deposit money banks and other authorised forex dealers