The Central Bank of Nigeria has issued a harsh warning to Deposit Money Banks and registered forex dealers, threatening to impose a fine on any DMB or approved FX dealer found culpable.
It emphasizes the necessary acceptance of old and lesser denomination US Dollar bills from consumers.
This was disclosed in a circular signed by the Acting Director of the Currency Operations Department, Solaja Mohammed-J Olayemi, posted on Monday on the bank’s website.
This directive is in reaction to consumer market intelligence data that show a consistent pattern of selective rejection of these banknotes by financial institutions and currency dealers.
The CBN underscored the importance of strictly adhering to its earlier directive.
The new circular referred to an earlier directive, COD/DIR/INT/CIR/001/002, issued on April 9, 2021, which specifically barred selective acceptance of deposits and required all relevant parties to fully comply.
The circular reads in part “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.
“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.”
According to the statement, all Deposit Money Banks and authorized currency dealers must now accept both old series and lower denominations of USD bills recognized as legal cash.
This directive intends to guarantee that clients can deposit their bills without experiencing undue rejection.
The CBN has stated its willingness to impose fines on any DMB or approved currency dealer who refuses to accept old series or lower denominations of USD bills from customers.
