China’s central bank, the People’s Bank of China (PBOC), announced on Friday that it has renewed a bilateral currency swap agreement with the Central Bank of Nigeria.
The renewed deal, valued at 15 billion yuan (approximately 2.09 billion U.S. dollars or 3.28 trillion Nigerian naira), is set to last for three years, with the possibility of renewal upon mutual agreement.
The agreement is seen as a significant step in deepening financial cooperation between the two nations. According to the PBOC’s statement, the renewal of the currency swap arrangement aims to boost the use of the Chinese yuan and the Nigerian naira, facilitating smoother bilateral trade and investment. This move aligns with China’s broader strategy to expand the global use of its currency and strengthen economic ties with key trading partners, including Nigeria.
By enhancing financial cooperation and making trade transactions between the two countries more efficient, the deal is expected to benefit businesses in both nations by mitigating currency exchange risks and lowering transaction costs.
