Nigeria, China Strike $2.5Bln Currency Swap Deal – Reports
AFP 2018 / Fred DUFOURBusiness18:03 03.05.2018Get short URL2200
MOSCOW (Sputnik) – The Central Bank of Nigeria (CBN) has signed a currency swap deal worth about $2.5 billion with the People’s Bank of China to provide adequate local currency liquidity for transactions between national businesses, The Punch newspaper reported on Thursday, citing a high-ranking official from the Central Bank of Nigeria (CBN).
The deal that is the result of two-year tense talks, aimed at facilitating bilateral trade, investments and strengthening of the financial stability of both nations as well as reducing difficulties related to the use of third currencies in mutual business transactions.
The signing ceremony took place in Beijing, according to the newspaper.
READ MORE: China’s Yuan May Strengthen Its Position in the Next Few Years — Analyst
Back in 2014, CBN’s deputy governor Kingsley Moghalu said that 85 percent of the country’s foreign reserves were in dollars and the country had to keep more on Chinese Yuan as the country was expanding its global trade.
“It was clear to us that the future of international economics and trade will shift in large part to business with and by China. Ultimately the renminbi (Yuan) is likely to become a global convertible currency,” Moghalu said at that time.