20241227 200620

China, Nigeria Renew Currency Swap Agreement

China’s central bank, the People’s Bank of China (PBOC), announced Friday the renewal of a bilateral currency swap agreement with the Central Bank of Nigeria (CBN).

The agreement is valued at 15 billion yuan (approximately $2.09 billion USD), equivalent to N3.28 trillion Nigerian. This arrangement will be valid for three years and is renewable upon mutual consent between the two central banks, according to a statement released on the PBOC’s website.

The renewal underscores the commitment of both nations to bolster financial cooperation. The PBOC stated that the swap agreement aims to expand the use of the Chinese yuan and the Nigerian naira in bilateral trade, thereby promoting and facilitating increased trade and investment flows between China and Nigeria.

This move is expected to reduce reliance on third-party currencies like the U.S. dollar in transactions between the two countries.