By BUKOLA IDOWU, Lagos
Following complaints that banks reject old and lower denomination dollar notes, the Central Bank of Nigeria has issued a warning to commercial banks and forex dealers saying it will not hesitate to sanction any institution found wanting.
It stated this in a circular made available on its website on Tuesday night, as it also warned against the stamping defacing of dollar notes, a practice which it said makes it difficult to authenticate the notes.
The circular signed by the Director, Currency Operations department of the CBN, Ahmed Umar and dated April 9, 2021, the apex bank said it has in recent times been inundated with complaints from members of the public on the rejection of old and lower denominations of United States dollar bills by deposit money banks (DMBs) and other authorized forex dealers.
Consequently it said “all DMBs/authorized forex dealers should henceforth accept both old series and lower denominations of United States Dollars (USD) that are legal tender for deposit from their customers.’’
“The CBN will not hesitate to sanction any DMB or other authorized forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers. In addition, all authorized forex dealers are advised to desist from defacing/stamping US Dollar Banknotes as such notes always fail authentication test during processing/sorting.