China, Nigeria seal $2.5 billion currency swap deal

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The central bank of China said yesterday, Thursday that it has signed a currency swap agreement with its Nigerian counterpart.

A statement by Nigerian’s CBN image maker, Mr. Isaac Okoroafor, corroborated this. Mr. Okoroafor in the statement said that the agreement was a culmination of over two years of painstaking negotiations by both banks.

Also, according to the People’s Bank of China (PBOC), the agreement will allow the two countries to swap a total of 15 billion Chinese yuan (2.35 billion dollars) for 720 billion Nigerian Naira, or vice versa, in the next three years.

The major significance of the agreement is the possibility of almost eliminating the need for a third currency such as the dollar to consummate transactions between China and Nigeria.

According to PBOC is aimed at facilitating bilateral trade and investment and promoting the financial stability of both sides. The deal can be extended by mutual consent. It said.

Mr. Godwin Emefiele, Governor of Central Bank of Nigeria led CBN officials the official signing ceremony in Beijing, China, last Friday while Governor of People’s Bank of China (PBoC), Dr. Yi Gang, led the Chinese team.

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