The Central Bank of Nigeria has warned Deposit Money Banks (DMBS) and Forex Dealers to desist from the act of rejecting old and lower denominations of the US Dollar bills.
This is according to a recent circular issued by the apex bank and signed by its Director of Currency Operations, Ahmed Umar.

According to the notice, the apex bank emphasized that it has been inundated with complaints from members of the public in recent times over the rejection of old/lower denominations of US Dollar bills by the aforementioned parties- DMBs and Forex Dealers.

The apex bank wondered why defaulting institutions blatantly continued this act, despite being fully aware that the old series and lower denominations of the US Dollar are legal tender for deposit from their customers. Going forward, in a bid to forestall the future occurrence of this anomaly, the apex bank promised to sanction erring or defaulting institution(s).

READ: CBN to pay N5 for $1 in “CBN Naira 4 Dollar scheme” for Diaspora Remittances

Commenting on the recent development, a part of the recent CBN circular emphasized that: ‘’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 dealer who refuse to accept old series/lower denominations of US Dollar bills from their customers.’’

On the other hand, the apex institution warned all authorized forex dealers to desist from defacing/stamping US Dollar banknotes, as such notes always fail authentication test during processing/sorting.

Naijabusiness.com.ng understands that the recent policy might be connected to CBN’s renewed drive of attracting more forex into the country, in a bid to meet local demand and boost liquidity in the FX market. This has been a major focus of the CBN in recent times, leading to the adoption of a ‘’Naira4 Dollar’’ scheme. For more information about the CBN circular, click HERE.


https://www.naijabusiness.com.ng/news/2021/cbn-flays-banks-fx-dealers-for-rejecting-old-and-lower-us-dollar-notes/

BDCs re part of the problem of Nigeria

Nigerian mentality.

They reject lower denomination of Naira.

Now they've transferred their attitude to foreign currency.

This does not only happen in nigeria. South africa for instance, they hardly take the old USD and even if they do, they exchange $100 for as low as R500. The lower denomination they exchange from between R10 to R12 for a dollar but if you got the new $100 note they exchange for R1450 which is R14.50 for a dollar. I dont know why that is, so its not only a nigerian problem

The Central Bank of Nigeria (CBN) threatens to sanction Deposit Money Banks (DMBs) and other authorised foreign exchange (forex) dealers rejecting old/lower denominations of US Dollar bills.

This threat was given by the Bank via a circular issued by the Director of Currency Operations Department of the CBN, Mr Ahmed Umar.

The apex bank said it is wrong for banks and authorised FX dealers to reject lower or old Dollar bills from their customers, noting that it would no longer accept such.

In the circular, the CBN explained that it issued this warning after receiving several complaints from customers and members of the public.
It further advised banks and forex dealers to desist from defacing the foreign currency as it was making it difficult to authentic it during sorting and processing.

“All DMBs/authorised forex dealers should henceforth accept both old series and lower denominations of the United States Dollars that are legal tender for deposit from their customers.

Newphil:
The Central Bank of Nigeria has warned Deposit Money Banks (DMBS) and Forex Dealers to desist from the act of rejecting old and lower denominations of the US Dollar bills.
This is according to a recent circular issued by the apex bank and signed by its Director of Currency Operations, Ahmed Umar.

According to the notice, the apex bank emphasized that it has been inundated with complaints from members of the public in recent times over the rejection of old/lower denominations of US Dollar bills by the aforementioned parties- DMBs and Forex Dealers.

The apex bank wondered why defaulting institutions blatantly continued this act, despite being fully aware that the old series and lower denominations of the US Dollar are legal tender for deposit from their customers. Going forward, in a bid to forestall the future occurrence of this anomaly, the apex bank promised to sanction erring or defaulting institution(s).

READ: CBN to pay N5 for $1 in “CBN Naira 4 Dollar scheme” for Diaspora Remittances

Commenting on the recent development, a part of the recent CBN circular emphasized that: ‘’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 dealer who refuse to accept old series/lower denominations of US Dollar bills from their customers.’’

On the other hand, the apex institution warned all authorized forex dealers to desist from defacing/stamping US Dollar banknotes, as such notes always fail authentication test during processing/sorting.

Naijabusiness.com.ng understands that the recent policy might be connected to CBN’s renewed drive of attracting more forex into the country, in a bid to meet local demand and boost liquidity in the FX market. This has been a major focus of the CBN in recent times, leading to the adoption of a ‘’Naira4 Dollar’’ scheme. For more information about the CBN circular, click HERE.


https://www.naijabusiness.com.ng/news/2021/cbn-flays-banks-fx-dealers-for-rejecting-old-and-lower-us-dollar-notes/

CBN trying to reduce their risk.

Smart ass.