The CBN issued a circular dated 27 June 2024, signed by Solaja Olayemi, the acting director of the currency operations department. This circular served as a reminder of a previous circular issued on 9 April 2021, which explicitly discouraged the selective acceptance of deposits. The CBN reiterated that this policy remains in force and must be strictly adhered to by all relevant parties.
“The outcome of the consumer market intelligence conducted by the Bank revealed the continued rejection of old/lower denominations of United States (US) Dollar bills by Deposit Money Banks (DMBs) and other authorized forex dealers,” the circular stated.
The CBN emphasized its commitment to enforcing compliance with this policy. It warned that it would not hesitate to sanction any commercial bank or authorized forex dealer that refuses to accept old series or lower denominations of US Dollar bills from customers. This warning is intended to ensure that all financial institutions comply with the directive and treat all denominations of USD notes equally.
“Kindly be reminded that the Central Bank of Nigeria (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,” the circular reiterated.
The CBN also advised all authorized forex dealers to refrain from defacing or stamping US Dollar banknotes. It noted that such actions could cause the notes to fail authentication tests during processing and sorting. This advice aims to maintain the integrity of the currency and ensure that all USD notes are in good condition for circulation.
In conclusion, the CBN’s directive serves as a reminder to all financial institutions in Nigeria to accept all denominations of USD notes from their customers. The CBN’s commitment to enforcing this policy underscores its dedication to ensuring a fair and transparent financial system. By adhering to this directive, banks and forex dealers can help maintain the integrity of the currency and build trust with their customers.
