• July 15, 2024

CBN Threatens To Sanction Banks For Rejecting Old, Small Dollar Notes

 CBN Threatens To Sanction Banks For Rejecting Old, Small Dollar Notes

By Damilare Adeleye

The Central Bank of Nigeria (CBN) has threatened to sanction Deposit Money Banks (DMBs) for rejecting old and small denominations of the United States of America Dollars.

In a circular issued by the Ag. Director of Currency Operations Department of CBN, with reference: COD/DIR/INT/CIR/001/017, the apex bank said its market intelligence had revealed the continued rejection of the affected Dollar notes, describing such act as unacceptable.

It also urged Bureau De Change operators and the public to desist from defacing the notes.

The acting director, recalling a 2021 circular noted, that the bank’s directive which frowns at the selective acceptance of deposits is still in force and must be adhered to by all parties.

The circular read, “The outcome of the consumer market intelligence conducted by the bank revealed the continued rejection of old/lower denominations of United States dollar bills by Deposit Money Banks and other authorised forex dealers.

“Kindly be reminded that the CBN circular referenced COD/DIR/INT/CIR/001/002 and dated 9th April 2021 which explicitly frowned at this selective acceptance of deposit is still in force and must be adhered to and complied with by all relevant parties.

“For the avoidance of doubt and further guidance on the circular, the content is hereby reissued as follows for strict compliance: all DMBs /authorised 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.

“In addition, all authorised forex dealers are advised to desist from defacing/stamping US dollar banknotes as such notes always fail authentication tests during processing/sorting. Please note for immediate compliance.”

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