China, Nigeria Sign Currency Swap Deal

China’s central bank otherwise known as the Peoples’ Bank of China, PBoC, on Thursday revealed that it has signed a currency swap agreement with its counterpart in Nigeria.

According to a statement on the official website of the PBoC, the agreement will allow the two sides to swap a total of 15 billion Chinese yuan ($2.35bn) for N720bn, or vice versa, in the next three years.

It added: “The move is aimed at facilitating bilateral trade and investment and promoting the financial stability of both side.

“The deal can be extended by mutual consent.”

Currency swap deal allows two institutions to exchange payments in one currency for equivalent amounts in order to facilitate bilateral trade settlements and provide liquidity support to financial markets.