Banks, BDCs Rejecting Old, Small Dollar Denominations Risk Sanction – CBN

The Central Bank Of Nigeria (CBN) said that it will sanction any Deposit Money Bank (DMB) and Bureau De Change (BDC) operators in the country who reject old and small denominations of the United States Dollar bills.

This is contained in a circular issued to all DMBs, BDCs and the general publict and signed by the Ag. Director of Currency Operations Department, CBN, Mr. Mohammed Solaja.

The apex Bank said its Market Intelligence had revealed the continued rejection of the affected Dollar notes, which it described as unacceptable.

According to the CBN, its earlier circular number COD/DIR/INT/001//002, dated April 9, 2021, remained in force and that its provisions would be applied against any bank or authorised Foreign Exchange dealer who contravened the guidelines.

The circular, which was posted on the website of the CBN this Tuesday and earlier on June 27, 2024, stated that all DMBs and authorised Foreign Exchange dealers must accept old series and small denominations of US Dollars that are brought by their customers for deposit.

“The Central Bank of Nigeria will not hesitate to sanction any DMB or authorised Foreign Exchange dealer who refuses to accept old series/lower denominations of the US Dollar Bills from their customers.

“In addition, all authorized Foreign Exchange Dealers are advised to desist from defacing/stamping US banknotes as such notes always fail authentication test during processing/sorting,” the CBN circular stated.