LAGOS, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria has cautioned Deposit Money Banks against refusing old and small denominations of United States dollar bills, warning of potential sanctions for non-compliance.
CBN also urged Bureau De Change operators and the public to refrain from defacing the notes.
This warning was issued in a circular signed by the acting Director of the Currency Operations Department of CBN, Solaja Mohammed, referencing COD/DIR/INT/CIR/001/017 on Tuesday.
The directive was issued based on customer market intelligence conducted by the bank, revealing that commercial banks and forex traders were rejecting old or lower denominations of dollar bills.
The acting director referenced a 2021 circular, emphasizing that the bank’s policy against selective acceptance of deposits remains in effect and must be followed by all parties.
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The circular read, “The outcome of the consumer market intelligence conducted by the bank revealed the continued rejection of old/lower denominations of United States dollar bills by Deposit Money Banks and other authorised forex dealers.
“Kindly be reminded that the CBN circular referenced COD/DIR/INT/CIR/001/002 and 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.
“For the avoidance of doubt and further guidance on the circular, the content is hereby reissued as follows for strict compliance: all DMBs /authorised 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 authorised forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers.
“In addition, all authorised forex dealers are advised to desist from defacing/stamping US dollar banknotes as such notes always fail authentication tests during processing/sorting. Please note for immediate compliance.”
This development comes several months after the Economic and Financial Crimes Commission commenced arresting and prosecuting Nigerians who mutilate and deface the naira.