China, Nigeria renew $2bn currency-swap deal

China, Nigeria renew $2bn currency-swap deal

By Fly Cable News

China and Nigeria have renewed a 15 billion yuan ($2bn) currency-swap agreement aimed at enhancing trade and investment between the two nations.

The arrangement is expected to bolster financial cooperation and promote the broader use of the yuan and naira in bilateral transactions, according to the People’s Bank of China, as reported Bloomberg and Chinese local media on Friday.

“The agreement is valid for three years and may be renewed upon mutual consent,” the central bank said in a statement.

The renewal of the currency-swap deal is anticipated to deepen economic ties, facilitate cross-border trade, and encourage investment by reducing reliance on third-party currencies such as the US dollar, the bank added.

The currency-swap framework was first established in May 2018, when the Central Bank of Nigeria and the People’s Bank of China signed a deal valued at renminbi (RMB) 16 billion (about $2.5bn).