AT DEC 28 2024-theGBJournal| The Chinese Central Bank (PBOC) on Friday, announced that it has renewed its bilateral currency swap agreement with the Central Bank of Nigeria (CBN), worth 15 billion yuan, approximately $2.09 billion or N3.28 trillion).
Valid for 3 years, this deal strengthens financial cooperation, boosts bilateral trade between Nigeria and China, and promotes local currency use, even as it underscores the importance of strategic partnerships in shaping global trade dynamics.
The Bilateral Currency Swap Agreement was first concluded on April 27, 2018, at a ceremony in Beijing, China, between the Federal Government and the People’s Republic of China.
It is designed to aid trade transactions between China and Nigeria and remove the need to first source for the US Dollars.
The CBN and the People’s Bank of China executed the Currency Swap Agreement on behalf of their respective countries.
The Agreement seeks to create a platform that provides Naira liquidity to Chinese firms and investors looking to do business with Nigeria on the one hand; and also provides Chinese Yuan liquidity to Nigerian firms and investors looking to do business with China on the other hand.
As of end of August, PBOC have signed bilateral currency swap agreements with 42 foreign central banks or monetary authorities, as it looks to strengthen Yuan’s global reach.
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