By Emmanuel Kwada
In a move aimed at strengthening financial cooperation and promoting bilateral trade, China and Nigeria have renewed their currency swap agreement. The People’s Bank of China, the country’s central bank, announced on Friday that it has renewed the agreement with the Central Bank of Nigeria, with a total value of 15 billion yuan (approximately 2.09 billion US dollars or 3.28 trillion Nigerian naira).
This development is seen as a positive step forward in deepening economic ties between the two countries and promoting mutual benefit
The three-year agreement, which can be renewed upon mutual consent, is expected to expand the use of the Chinese yuan and the Nigerian naira in bilateral trade and investment. This development is seen as a significant step forward in boosting economic ties between the two countries, with China being one of Nigeria’s largest trading partners.
The currency swap agreement allows for the exchange of currencies between the two central banks, providing a financial safety net for businesses and investors operating in both countries. This arrangement is expected to reduce the risk of exchange rate fluctuations and promote the use of local currencies in trade and investment.
The currency swap agreement is expected to further facilitate trade and investment between the two countries
The renewal of the agreement is a testament to the growing economic relationship between China and Nigeria. China has been increasing its investment in Nigeria in recent years, with a focus on infrastructure development, energy, and agriculture. The currency swap agreement is expected to further facilitate trade and investment between the two countries, promoting economic growth and development.
The People’s Bank of China stated 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.” This development is seen as a positive step forward in deepening economic ties between the two countries and promoting mutual benefit.
