NaijaOnPoint Nigeria reports that Nigeria and China have renewed the currency swap agreement between both countries.
This Nigeria news platform understands that the renewal is valid for three years and can be renewed upon mutual consent.
The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, who shared the information on his social media account, said China’s central bank confirmed on Friday that it has renewed a bilateral currency swap agreement with the Central Bank of Nigeria (CBN).
The total value of the agreement is 15 billion yuan (about 2.09 billion U.S. dollars), or 3.28 trillion Nigerian naira, the People’s Bank of China said in a statement on its website.
It said that the renewal of the currency swap arrangement will strengthen financial cooperation between China and Nigeria, expand the use of the two currencies, and promote and facilitate bilateral trade and investment.
Rcalls back in 2018, the CBN and its Chinese counterpart, signed a currency swap deal after two years of negotiations between the two countries.
The deal, valued at about $2.5bn, is aimed at providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby reducing the difficulties encountered in the search for third currencies.
The move is also aimed at facilitating bilateral trade and investment and promoting the financial stability of both countries.