CBN Warns Banks, BDCs Against Rejection Of Lower Dollar Bills

The Central Bank of Nigeria (CBN) has issued a warning to Deposit Money Banks (DMBs) and authorised forex dealers, advising them against rejecting old and lower dollar denominations from customers in the country.

According to the apex bank, the directive became necessary as it had been inundated with complaints from customers after it conducted consumer market intelligence.

In a circular dated June 27, 2024 but made public by the apex bank on Monday, CBN’s Acting Director, Currency Operations Department, Solaja Olayemi, said the regulator frowned at “this selective acceptance of deposit” and that all relevant parties comply accordingly.

The CBN said all banks and authorised forex dealers “should henceforth accept both old series and lower denominations of United States Dollars (USD) that are legal tender for deposit from their customers”.

The financial regulator warned that sanctions would be meted out to any bank or authorised forex dealer that reject old series or lower denominations of the United States’ greenback from their customers.

Earlier Warnings From CBN

The CBN had issued directives in 2021, instructing forex dealers and deposit money banks to stop refusing old dollar bills and denominations.

Complaints from customers over the refusal to accept the lower notes as a means of transaction had also led to sanctions.

The apex bank also warned authorised dealers from stamping or defacing dollar bills as it would fail the authentication tests during processing and sorting.
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