The Association of Bureau De Change Operators of Nigeria has advised customers to report Deposit Money Banks and licensed Bureau De Change operators rejecting lower dollar denominations and old series notes.
The President of ABCON, Aminu Gwandabe, made the call in an exclusive interview with THE WHISTLER.
He spoke in the wake of the displeasure expressed by the Central Bank of Nigeria over the rejection of lower denomination of the dollar which has affected dollar circulation.
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The CBN said it has “been inundated with complaints from members of the public on the rejection of old/lower denomination of US Dollar bills by Deposit Money Banks and other authorized forex dealers.”
The development had made the apex bank to order all licensed foreign exchange channels to accept those denominations with a threat of sanction.
Reacting to the development, Gwadebe said the policy would be strictly adhered to by ABCON members as the apex bank is seeking for avenues to boost dollar supply in the country.
He said, “We have circulated it (CBN circular) to all our members that this is the new directive and that they should also let their clients know that any bank that refuses to collect those dollar, they should come back and inform us, so that we will report to the CBN.
“The CBN also contacted us and they informed us of this circular. So, they said if we have such issues, we should not hesitate to report it immediately to the Central Bank so that they can take action.”
Apart from reporting banks who are the key players in the country’s forex exchange market, Gwadabe also tasked members of the public to report Bureau De Change Operators who reject old dollar series and lower denominations apart from the common $100 notes which currently trades at $486 at the parallel market and $410 at the Investors’ and Exporter Foreign Exchange Window.
The ABCON National President said, “Any of our member that rejects notes presented to him and then he refuse to transact with them, then that member should be reported to us and we will take action against them.”
He also addressed the issue of price deferential in the pricing of lower denomination dollar or older series of the currency.
THE WHISTLER understands that lower dollar denominations and older series sell less than the usual market price of the US dollar.
For instance, a $100 note which is currently $486 is traded less if it comes in lower denomination.
Addressing the issue, the ABCON boss said with the new directive, such issues would no longer exist.
According to him, when there is a market for the lower and older dollar notes, it would boost liquidity and eliminate the price discrimination.
He further called on the public to resist any price difference on lower dollar denominations and old dollar bills.