CBN to sanction banks rejecting previous greenback notes

The Central Financial institution of Nigeria has warned in opposition to the continued rejection of previous sequence and decrease denominations of america of American {dollars} by its regulated entities in Nigeria.

The financial institution threatened to sanction lenders that rejected the currencies.

This was contained in a round dated June 27, signed by the performing director of the forex operations division, Solaja Olayemi, which was just lately launched on the web site of the apex financial institution.

The round directed at Deposit Cash Banks, Bureau De Change operators and most people cautioned in opposition to the continued rejection of the previous sequence and decrease denomination of the American buck.

CBN mentioned the recent round adopted the result of its shopper market intelligence, which revealed the continued rejection of previous/decrease denominations of greenback payments by banks and different authorised foreign exchange sellers.

“Kindly be reminded that the Central Financial institution of Nigeria round referenced COD/DIR/INT/CIR/001/002 and dated ninth April 2021, which explicitly frowned at this selective acceptance of deposit, remains to be in power and have to be adhered to and complied with by all related events.

“For the avoidance of doubt and additional steering on the round, the content material is hereby reissued as follows for strict compliance: All DMBs /approved foreign exchange sellers ought to henceforth settle for each previous sequence and decrease denominations of United States {Dollars} which are authorized tender for deposit from their prospects. The CBN is not going to hesitate to sanction any DMB or authorised foreign exchange sellers who refuse to just accept previous sequence/decrease denominations of US Greenback payments from their prospects,” the round partly learn.

The round additionally warned authorised foreign exchange sellers in opposition to defacing/stamping US Greenback banknotes as such notes all the time fail authentication checks throughout processing/sorting.

CBN first issued the warning in a round signed by then director of the forex operations division, Ahmed Umar, on April 9, 2021.

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