The Central Bank of Nigeria has cautioned against the ongoing refusal of regulated entities in Nigeria to accept older series and smaller denominations of United States dollars. In a circular dated June 27, signed by Solaja Olayemi, acting director of the currency operations department, the bank threatened to penalize lenders that decline these currencies.
The circular, recently published on the apex bank’s website, targets Deposit Money Banks, Bureau De Change operators, and the public, advising them against persistently turning away older and smaller denomination American bills.
The directive follows the findings of the Central Bank’s consumer market intelligence, revealing the ongoing rejection of older and smaller denomination dollar bills by banks and authorized forex dealers.
It reinforces the April 9, 2021 circular (COD/DIR/INT/CIR/001/002) which explicitly disapproved of such selective deposit practices, still in effect and mandatory for compliance by all parties concerned.
Furthermore, the circular emphasizes that all Deposit Money Banks and authorized forex dealers must accept both older series and smaller denominations of US Dollars as legal tender for deposits from customers.
Non-compliance could lead to sanctions imposed by the CBN on offending banks and dealers. Additionally, authorized forex dealers are warned against defacing or stamping US Dollar banknotes, as such alterations often result in failed authentication during processing and sorting.
