The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) and authorized forex dealers to accept old and small denominations of US Dollar bills or face sanctions.
In a circular issued on Tuesday, the apex bank expressed dismay over the continued rejection of these notes, despite a previous directive in 2021.
According to the circular, signed by the Acting Director of Currency Operations Department, the CBN’s market intelligence revealed that some banks and forex dealers still refuse to accept these notes, which is “unacceptable”. The circular reminded banks of the earlier directive, which explicitly forbade selective acceptance of deposits.
The CBN directed all DMBs and authorised forex dealers to accept both old series and lower denominations of US Dollar bills as legal tender for deposit from customers. The apex bank warned that any bank or forex dealer that refuses to comply will face sanctions.
Additionally, the CBN advised authorised forex dealers to desist from defacing or stamping US Dollar banknotes, as such notes often fail authentication tests during processing and sorting. The circular concluded, “Please note for immediate compliance.”
See the circular below:
