Breaking News: The Central Bank of Nigeria (CBN) has issued a warning to commercial banks and authorized forex dealers in the country to desist from their habit of rejecting old and lower denominations of United States Dollar (USD) bills from customers.
Independent findings made by 9AM News Nigeria resulted in the confirmation of a stark pattern of commercial banks and forex dealers turning down old dollar notes or dollar notes of lower denominations such as the $20, $10 and $5 bills and $1 bills. Only the $100 and $50 bills were usually readily accepted by the banks and forex dealers.
9am news nigeria reported that the CBN in a circular dated 27th June 2024, pasted on the Central Bank’s website and signed by Solaja Mohammed-J Olayemi, the Acting Director of the Currency Operations Department emphasized the need for a strict adherence to its new directive.
The circular also made reference to an earlier directive, COD/DIR/INT/CIR/001/002, issued on 9th April 2021, which explicitly prohibited the 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.”
9AM News Nigeria also gathered information that the CBN has threatened to impose sanctions on Deposit Money Banks (Commercial Banks) and authorized forex dealers who defy its new directives by rejecting old or lower denominations of US dollar notes.
The Central Bank stated that this measure which it has undertaken was necessary and intended to ensure uniformity in handling foreign currency deposits and also enforce compliance.
In the circular, authorized forex dealers were also advised to cease the practice of stamping, marking and defacing US dollar banknotes.
Such actions often result in the notes failing tests for authentication during processing and sorting, therefore causing further complications.
The circular ended with a call for thorough and immediate compliance with the new directive.
9AM News Nigeria further findings.
Following widespread complaints from members of the public that Commercial banks and Forex traders were habitually rejecting old and low denomination dollar bills, the CBN in year 2021 ordered Deposit Money Banks (DMBs) and Bureau De Change (BDC) operators to accept old and lower denominations of US dollar and other foreign currency notes as legal tender or be slammed with sanctions. However there was no absolute and satisfactory compliance to the directive since then, hence prompting the issuance of this new circular by the CBN, along with stern warnings for full compliance.
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