BENEFITS OF CURRENCY SWAP DEAL BETWEEN NIGERIA AND CHINA
In the agreement signed by Godwin Emefiele, the CBN governor, and Yi Gang, PBoC governor, the currency swap deal is valued at Renminbi (RMB) 16 billion (about $2.5bn).
This is a highlight of the execution of a bilateral currency swap agreement between the Central Bank of Nigeria (CBN) and the Peoples Bank of China (PBoC) on Friday.
The deal, which has taken two years of negotiation, will provide the Chinese and Nigerian currencies directly to industrialists and other businesses from both countries.
This will reduce the difficulties encountered in the search for third currencies, according to Isaac Okorafor, the CBN spokesman, in a statement.
“Among other benefits, this agreement will provide naira liquidity to Chinese businesses and provide RMB liquidity to Nigerian businesses respectively, thereby improving the speed, convenience and volume of transactions between the two countries,” he said.
“It will also assist both countries in their foreign exchange reserves management, enhance financial stability and promotebroader economic cooperation between the two countries.”
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