CBN Issues Stern Warning Against Rejection of Old Dollar Bills
Central Bank Threatens Sanctions for Non-Compliance
The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions against the continued rejection of old series and lower denominations of the United States dollar. The apex bank has threatened to sanction any lenders found guilty of this practice.
In a circular dated June 27 and signed by Solaja Olayemi, the acting director of the currency operations department, the CBN directed Deposit Money Banks (DMBs), Bureau De Change operators, and the general public to cease the rejection of these currencies. The circular, recently published on the CBN’s website, emphasized that this directive follows the outcome of consumer market intelligence, which revealed ongoing non-compliance by banks and other authorized forex dealers.
The circular reminded all parties that the CBN’s previous directive from April 9, 2021, which explicitly prohibited selective acceptance of dollar deposits, remains in force and must be adhered to. “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 dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular stated.
Furthermore, the CBN cautioned authorized forex dealers against defacing or stamping US dollar banknotes, as such notes often fail authentication tests during processing and sorting.
This warning reiterates a previous circular issued on April 9, 2021, by the then director of the currency operations department, Ahmed Umar. The CBN’s ongoing vigilance in this matter underscores its commitment to maintaining the integrity and acceptance of all legal tender, regardless of denomination or series.
