Currency swap deal

Nigeria needs to increase exports to fully benefit from the US$2.5bn bilateral currency swap deal with China. The Central Bank of Nigeria (CBN), recently signed a bilateral currency swap deal with the People’s Bank of China (PBoC) worth about US$2.5 billion. In local currencies, the swap is worth about 15 billion Renminbi (RMB) or N720 billion. The deal’s aim is to reduce the demand for U.S. Dollar by Nigerians importing from China, and consequently strengthen…