[ICYMI] CBN to sanction banks rejecting old dollar notes

The Central Bank of Nigeria has issued a warning that it will impose sanctions on banks that refuse to accept old series and lower denominations of the United States dollar.

According to The PUNCH, this directive, dated June 27 and signed by the acting director of the currency operations department, Solana Olayemi, was recently published on the CBN’s website.

Addressed to Deposit Money Banks, Bureau De Change operators, and the general public, the circular highlighted the ongoing issue of rejecting older and smaller denominations of U.S. dollars.

The CBN’s decision to reissue this directive is based on findings from its consumer market intelligence, which indicated a continued refusal by banks and other authorized forex dealers to accept these bills.

The circular reiterated a previous directive referenced as COD/DIR/INT/CIR/001/002 and dated April 9, 2021, which also condemned this selective deposit acceptance.

The CBN stressed that this directive remains in force and must be followed by all concerned parties.

“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 authorised forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular stated.

The CBN also cautioned authorized forex dealers against defacing or stamping U.S. dollar banknotes, as such notes often fail authentication tests during processing and sorting.

This warning was initially issued in a circular signed by Ahmed Umar, the then director of the currency operations department, on April 9, 2021.