Nigeria and China have extended their currency swap agreement for an additional three years, with the option for further renewal by mutual agreement.
Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, shared the update on his social media page, according to reports.
The People’s Bank of China confirmed the renewal on Friday, stating that the agreement is valued at 15 billion yuan (approximately $2.09 billion or ₦3.28 trillion).
The bank noted on its website that the renewal aims to deepen financial cooperation between the two countries, encourage the use of local currencies, and strengthen bilateral trade and investment ties.
This agreement was first signed in 2018 after two years of negotiations between the Central Bank of Nigeria (CBN) and the People’s Bank of China. Initially valued at $2.5 billion, the deal was designed to provide sufficient local currency liquidity for businesses in both nations. It also sought to reduce reliance on third-party currencies, enhance bilateral trade and investment, and promote financial stability in both countries.