CBN to Penalize Banks Refusing Old Dollar Notes

Dollarthe Punch

The Central Bank of Nigeria (CBN) has warned against the continued rejection of old series and lower denominations of the United States dollar by its regulated entities in Nigeria. The bank threatened to sanction lenders that rejected these currencies.

In a circular dated June 27, 2024, the CBN's acting director of the currency operations department, Solaja Olayemi, directed Deposit Money Banks (DMBs), Bureau De Change (BDC) operators, and the general public to accept both old series and lower denominations of the US dollar that are legal tender

The circular stated that the CBN's previous circular, referenced COD/DIR/INT/CIR/001/002 and dated April 9, 2021, which explicitly prohibited the selective acceptance of dollar deposits, is still in force and must be adhered to by all relevant parties.

The CBN warned that it will not hesitate to sanction any DMB or authorized forex dealer who refuses to accept old series or lower denominations of US dollar bills from their customers.

The circular also cautioned against defacing or stamping US dollar banknotes, as such notes always fail authentication tests during processing and sorting.

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