Nigeria and China have renewed their currency swap agreement, extending its validity for another three years, with the possibility of further renewal by mutual consent.
According to reports, Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, announced the development on his social media platform.
Onanuga noted that the People’s Bank of China confirmed the renewal on Friday, highlighting that the agreement is worth 15 billion yuan (approximately 2.09 billion U.S. dollars or 3.28 trillion Nigerian naira).
The People’s Bank of China stated on its website that the currency swap renewal is expected to enhance financial collaboration between the two nations, increase the use of their local currencies, and boost bilateral trade and investment.
Recall that in 2018, the Central Bank of Nigeria (CBN) and the People’s Bank of China initially signed the currency swap deal following two years of negotiations.
The agreement, originally valued at about $2.5 billion, aimed to ensure sufficient local currency liquidity for businesses in both countries. It also sought to minimize reliance on third-party currencies, foster bilateral trade and investment, and promote financial stability in Nigeria and China.
