Nigeria, China extend currency swap agreement

Nigeria and China have renewed their currency swap agreement, extending its validity for an additional three years, with the option for further renewal by mutual agreement.

Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, disclosed the development on his social media platform. He revealed that the People’s Bank of China officially confirmed the renewal on Friday.

The agreement, now valued at 15 billion yuan (approximately $2.09 billion or 3.28 trillion naira), is expected to strengthen financial cooperation between the two nations. According to the People’s Bank of China, the renewed deal will enhance the use of local currencies, foster bilateral trade and investment, and promote economic ties.

https://x.com/aonanuga1956/status/1872674716235846111?t=Ze_FlO-RUZTv9aqx0hKDsg&s=19

First signed in 2018 after two years of negotiations between the Central Bank of Nigeria (CBN) and the People’s Bank of China, the currency swap agreement was initially valued at $2.5 billion. It was designed to provide businesses in both countries with sufficient local currency liquidity, reduce dependence on third-party currencies like the U.S. dollar, and boost financial stability.

The extension of the agreement signals a continued commitment to deepening economic collaboration and addressing liquidity needs for businesses operating between the two nations.