CBN to sanction banks over dollar rejection

The Central Bank of Nigeria says it will sanction Deposit Money Banks and other authorised dealers who reject the old and lower denominations of the United States dollar.

The Nigerian regulatory authority sounded the note of warning in a circular on Tuesday.

It said both the old series and lower denominations of the U.S. dollars were legal tender and should be accepted.

The circular, ‘The Rejection of Old/Lower Denomination of United States Dollar by DMBs/Forex Dealers’, was signed by CBN’s Director of Currency Operations, Ahmed Umar.

“All DMBs/authorised forex dealers should, henceforth, accept both old series and lower denominations of U.S. dollars that are legal tender front their customers.

“The CBN will not hesitate to sanction any DMB or other authorised forex dealers who refuse to accept old series/lower denominations of U.S. dollar bills from their customers,” CBN stated.

It also warned all the authorised forex dealers to desist from defacing or stamping on the U.S. currency banknotes, stating that’such notes always fail authentication tests during processing and sorting.

This warning came on the backdrop of complaints from members of the public about the rejection of old and lower denominations of U.S. dollar bills by DMBs and authorised forex dealers, CBN added.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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