The bilateral currency swap deal between China and Nigeria has been extended, enabling the exchange of 3.28 trillion Nigerian naira for 15 billion yuan, or almost $2 billion.
This agreement, which was first made in 2018, aims to make commerce and investment between the two countries easier by allowing direct currency exchanges independent of the US dollar.
The three-year arrangement can be extended with both parties’ assent, according to the People’s Bank of China (PBOC). The renewal intends to encourage bilateral commerce and investment, increase the usage of the yuan and naira, and fortify financial cooperation.
“The agreement is valid for three years and can be renewed upon mutual consent,” Bloomberg quoted the bank as saying.
This move is anticipated to lower transaction costs and strengthen economic relations between China and Nigeria, giving companies a simpler way to carry out cross-border operations.
