CBN to sanction banks, FX dealers for rejecting lower dollar notes

The Central Bank of Nigeria (CBN) has announced that it will sanction Deposit Money Banks (DMBs) and authorized forex dealers that refuse to accept old and lower denomination United States Dollar (USD) bills from customers.

In a circular dated June 27, 2024, signed by Solaja Mohammed-J Olayemi, the Acting Director of Currency Operations, the CBN emphasized the mandatory acceptance of such notes. This new circular references an earlier directive, COD/DIR/INT/CIR/001/002, issued on April 9, 2021, which explicitly prohibited selective acceptance of deposits and required full compliance from all relevant parties.

Despite the earlier directive, consumer market intelligence conducted by the CBN revealed that DMBs and other authorized forex dealers continue to reject old and lower denomination USD bills.

The CBN has reiterated that all Deposit Money Banks and authorized forex dealers must accept both old series and lower denominations of USD bills that are recognized as legal tender. This ensures customers can deposit these bills without facing unnecessary rejection.

The CBN is prepared to impose sanctions on any DMB or authorized forex dealer that refuses to accept old series or lower denomination USD bills from customers. This measure aims to enforce compliance and ensure uniformity in handling foreign currency deposits.

Additionally, the CBN cautioned authorized forex dealers against defacing or stamping USD banknotes, as such actions can cause the notes to fail authentication tests during processing and sorting, leading to further complications.

Source: 21stcenturychronicle.com

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