National Telescope national telescope newspaper
By Ekpenyong Emmanuel
In a move aimed at strengthening financial cooperation and promoting bilateral trade and investment, the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBC) have renewed a bilateral currency swap agreement. The renewed agreement, which is valid for three years and can be renewed upon mutual consent, has a total value of 15 billion yuan (approximately $2.09 billion or N3.28 trillion).
The PBC announced the renewal of the currency swap arrangement on its official website, stating that it will expand the use of the naira and yuan, facilitate bilateral trade and investment, and promote financial cooperation between the two countries. The agreement is expected to provide Nigerian businesses with greater access to the Chinese market, while also enabling Chinese companies to invest in Nigeria’s growing economy.
The renewal of the currency swap deal is a significant development in the growing bilateral relationship between Nigeria and China. The two countries established formal diplomatic relations in 1971, and since then, their economic ties have expanded rapidly. China has become one of Nigeria’s largest trading partners, with bilateral trade volumes increasing significantly over the years.
The currency swap agreement is seen as a key component of Nigeria’s efforts to diversify its economy and reduce its dependence on the US dollar. By using the yuan for trade settlements, Nigerian businesses can avoid the risks associated with currency fluctuations and transaction costs. The agreement is also expected to boost Nigeria’s foreign exchange reserves and provide a cushion against external shocks.
The CBN has welcomed the renewal of the currency swap agreement, stating that it will enhance financial cooperation and promote trade and investment between Nigeria and China. The bank has assured that it will work closely with the PBC to implement the agreement and ensure that it benefits both countries.
The renewed currency swap deal is a positive development for Nigeria’s economy, and it is expected to have a significant impact on the country’s trade and investment relationships with China. As Nigeria continues to seek ways to diversify its economy and promote economic growth, the renewal of the currency swap agreement with China is a step in the right direction.
