The Central Bank of Nigeria (CBN) has issued a stern warning to Deposit Money Banks (DMBs) and other authorized forex dealers to cease the rejection of old and small denominations of United States dollar bills. The warning, which includes threats of sanctions for non-compliance, was issued in a circular signed by the acting Director of the Currency Operations Department, Solaja Mohammed, with reference: COD/DIR/INT/CIR/001/017 on Tuesday.
The directive comes after a customer market intelligence survey conducted by the CBN revealed that commercial banks and forex traders were refusing to accept old and lower denominations of dollar bills. This practice is in direct violation of a 2021 CBN circular that prohibits the selective acceptance of deposits.
The acting director reiterated the bank’s stance, emphasizing that the previous directive remains in force and must be followed. The circular stated, “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 authorized forex dealers.”
It further reminded all concerned parties of the 2021 circular (referenced COD/DIR/INT/CIR/001/002, dated April 9, 2021), which clearly prohibits the selective acceptance of dollar deposits. The key points of the reissued directive include:
– All DMBs and authorized forex dealers must accept both old series and lower denominations of US dollar bills that are legal tender from their customers.
– The CBN will impose sanctions on any DMB or authorized forex dealer who refuses to accept these bills.
– Forex dealers are advised against defacing or stamping US dollar banknotes, as such practices cause the notes to fail authentication tests during processing and sorting.
The CBN’s directive aims to standardize the acceptance of US dollar bills and maintain the integrity of the currency handling processes. This development also follows recent actions by the Economic and Financial Crimes Commission (EFCC), which has begun arresting and prosecuting individuals involved in the mutilation and defacement of the naira.
