The Central Bank of Nigeria (CBN) has issued a stern warning to its regulated entities against the continued rejection of old series and lower denominations of United States dollars.
The bank has threatened sanctions against lenders that refuse to accept these currencies. This warning was issued in a circular dated June 27, signed by the acting director of the currency operations department, Solaja Olayemi, and recently published on the apex bank’s website.
Addressed to deposit money banks, Bureau de Change operators, and the general public, the circular cautioned against rejecting old series and lower denominations of US dollars. The CBN stated that the new circular was prompted by consumer market intelligence revealing ongoing rejections by banks and other authorized forex dealers.
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The circular reiterated a previous directive from April 9, 2021, referenced as COD/DIR/INT/CIR/001/002, which explicitly prohibited selective acceptance of deposits. The circular stated, “Kindly be reminded that the Central Bank of Nigeria circular referenced COD/DIR/INT/CIR/001/002 and dated April 9, 2021, which explicitly frowned at this selective acceptance of deposits, is still in force and must be adhered to and complied with by all relevant parties.”
The CBN further emphasized that all deposit money banks and authorized forex dealers must accept both old series and lower denominations of US dollars that are legal tender from their customers. “The CBN will not hesitate to sanction any DMB or authorized forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular stated.
Additionally, the circular warned authorized forex dealers against defacing or stamping US dollar banknotes, as such notes often fail authentication tests during processing and sorting.
The CBN first issued this warning in a circular signed by the then-director of the currency operations department, Ahmed Umar, on April 9, 2021.
