The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) against rejecting old and small denominations of US dollars, with the threat of sanctions for non-compliance.
In a circular signed by the Acting Director of the Currency Operations Department, Mr. Mohammed Solaja, the CBN highlighted ongoing market intelligence reports indicating the continued rejection of these dollar notes, deeming it unacceptable. The circular reaffirmed the provisions of a previous directive (COD/DIR/INT/001//002) issued on April 9, 2021, stating that these guidelines remain in effect and will be enforced against any non-compliant banks or authorized foreign exchange dealers.
The latest circular, dated June 27, 2024, seen by Vanguard, reiterates that all DMBs and authorized foreign exchange dealers must accept old series and small denominations of dollars from their customers for deposit. The CBN emphasized, “The Central Bank of Nigeria will not hesitate to sanction any DMB or authorized foreign exchange dealer who refuses to accept old series/lower denominations of the US dollar bills from their customers.”
Additionally, the CBN advised all authorized foreign exchange dealers to refrain from defacing or stamping US banknotes, as such practices cause the notes to fail authentication tests during processing and sorting.
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