The Central Bank of Nigeria (CBN) has issued a stern warning to financial institutions regarding the rejection of old series and lower denominations of US dollar notes. In a recent circular, the apex bank threatened sanctions against banks and authorised forex dealers who continue this practice.
Key Points:
- Circular Details:
- Date: June 27, 2023
- Signatory: Solaja Olayemi, Acting Director, Currency Operations Department
- Target Audience: Deposit Money Banks (DMBs), Bureau de Change operators, and the general public
- Background:
- Consumer market intelligence revealed the ongoing rejection of old or lower-denomination US dollar bills.
- Reiterates the previous circular (COD/DIR/INT/CIR/001/002) dated April 9, 2021.
- CBN Directives:
- All DMBs and authorised forex dealers must accept old series and lower denominations of US dollar notes.
- Strict compliance is mandatory.
- Sanctions will be imposed on non-compliant institutions.
- Additional Warning:
- Forex dealers cautioned against defacing or stamping US dollar banknotes.
- Such practices may cause authentication failures during processing or sorting.
This renewed emphasis on accepting all legal tender US dollar notes aims to ensure smooth foreign exchange operations in Nigeria. The CBN’s proactive stance underscores its commitment to maintaining stability in the forex market and protecting consumer interests.
Financial institutions are advised to review their policies and train staff accordingly to avoid potential sanctions. Customers experiencing difficulties with depositing old or lower-denomination US dollar notes should report such incidents to the CBN.
For more information on forex regulations and guidelines, visit the official CBN website or consult with your financial institution.