Nigeria: CBN to Sanction Banks, BDCS for Rejecting Old, Small Dollar Denominations

2 July 2024
Leadership (Abuja)
By Bukola Idowu

The Central Bank Of Nigeria (CBN) has said that it will sanction any Deposit Money Bank (DMB) and Bureau De Change (BDC) operators in the country who reject old and small denominations of the United States Dollar bills.

According a circular signed by the Ag. Director of Currency Operations Department at the CBN, Mr. Mohammed Solaja, and issued to all DMBs, BDCs and the general public, the apex Bank said its Market Intelligence had revealed the continued rejection of the affected Dollar notes, which it described as unacceptable.

According to the CBN, its earlier circular number COD/DIR/INT/001//002, dated April 9, 2021, remained in force and that its provisions would be applied against any bank or authorised Foreign Exchange dealer who contravened the guidelines.

The circular, which was posted on the website of the CBN this Tuesday and earlier on June 27, 2024, stated that all DMBs and authorised Foreign Exchange dealers must accept old series and small denominations of US Dollars that are brought by their customers for deposit.

"The Central Bank of Nigeria will not hesitate to sanction any DMB or authorised Foreign Exchange dealer who refuses to accept old series/lower denominations of the US Dollar Bills from their customers.

"In addition, all authorised Foreign Exchange Dealers are advised to desist from defacing/stamping US banknotes as such notes always fail authentication test during processing/sorting," the CBN circular stated.

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