CBN to sanction banks for rejecting old, small Dollar denominations

Financial Markets

The Central Bank of Nigeria (CBN) has threatened to sanction Deposit Money Banks (DMBs) for rejecting old and small denominations of the United States of America Dollars.

In a circular issued by the Ag. Director, Currency Operations Department, CBN, Mr. Mohammed Solaja, the apex bank said its market intelligence had revealed the continued rejection of the affected Dollar notes, which it described as unacceptable.

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According to the CBN its earlier circular number COD/DIR/INT/001//002, dated April 9, 2021 remained in force and its provisions would be applied against any bank or authorised foreign dealer who contravened the guidelines.

The bank, in the new circular, dated June 27, 2024, which was seen by Vanguard yesterday, insisted that all parties must adhere to its directives.

It said all DMBs and Authorised foreign exchange dealers must accept old series and small denominations of Dollars that are brought by their customers for deposit.

It added, “The Central Bank of Nigeria will not hesitate to sanction any DMB or authorised foreign exchange dealer who refuses to accept old series/lower denominations of the US Dollar bills from their customers.

“In addition, all authorised foreign exchange dealers are advised to desist from defacing/stamping US Banknotes as such notes always fail authentication test during processing/sorting.”