2015-04-17 | BSD/DIR/GEN/LAB/08/013

Currency Substitution and Dollarisation of the Nigerian Economy

The Central Bank of Nigeria (CBN) has issued a letter to all banks operating in the country, reminding them that the Naira is the only legal tender and that it is illegal to price or denominate products and services in any foreign currency. The CBN warns that it is an offense to refuse to accept the Naira as a means of payment and that appropriate sanctions will be imposed on banks that breach this regulation. This circular supersedes previous foreign exchange guidelines and is intended to curb the recent trend of currency substitution and dollarization in the Nigerian economy.

Nigeria

Central Bank of Nigeria

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