In line with the currency swap deal signed last month with the People’s Bank of China last month, the Central Bank of Nigeria (CBN) has said it may conduct bi-weekly bidding sessions for the sale of Chinese currency to authorised dealers.
Amehnews recalled in May, last month CBN signed the agreement with the PBoC to facilitate trade between the two countries and enhance foreign reserve management, making Nigeria the third country in Africa (after South Africa and Egypt) to sign such a deal with China.
In the statement, the PBoC-CBN Bilateral Currency Swap Agreement will allow the two countries to swap a total of 15 billion renminbi for N720bn, or vice versa, in the next three years. The deal can be extended by mutual consent.
According to the circular endorsed by the Director, CBN, Financial Markets Department, Dr. Alvan Ikoku and released on Thursday said, “The swap agreement allows for both banks to, among other purposes, make available liquidity in their respective currencies for the facilitation and promotion of trade and investments across the two nations, through the purchase, sale and subsequent repurchase and resale of the Chinese yuan against the naira and vice versa.
“To achieve this, the CBN may conduct bi-weekly renminbi bidding sessions.