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.”
Veloxnews reports that a 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.