The Central Bank of Nigeria (CBN) has announced its intention to sanction Deposit Money Banks (DMBs) that reject old and small denominations of United States Dollars. This decision follows findings from CBN’s market intelligence, which revealed the continued refusal of these notes by some banks, a practice deemed unacceptable by the apex bank.
A renowned financial expert, praised the CBN’s proactive stance, highlighting its importance in maintaining the integrity and fluidity of currency operations. In a circular issued by the Acting Director of the Currency Operations Department, with reference COD/DIR/INT/CIR/001/017, the CBN emphasized that all denominations of the US Dollar remain legal tender and must be accepted by DMBs in Nigeria.
The CBN’s directive aims to ensure that all dollar notes, regardless of their age or denomination, are honored, thereby upholding the standards of financial transactions and preventing unnecessary disruptions in the currency exchange process.