Nigeria’s central bank makes first auction of Chinese yuan after swap deal

The currency swap agreement will reduce pressure on the naira-dollar exchange rate by weaning Nigerian importers off the greenback.

Isaac Okorafor, CBN's spokesman, confirmed the approval and the first auction of the Chinese currency in a text message to Bloomberg on Friday, July 20, 2018.

“Governor Godwin Emefiele granted approval for the auction to take place on Friday.”

According to Bloomberg, the Central Bank asked banks to bid for renminbi between 9:00 a.m. and midday on Friday. The results will probably be announced by Monday, sources told the news platform.

On May 3, 2018, the Central Bank of Nigeria signed a bilateral Currency Swap agreement with the People’s Bank of China (PBoC) worth about $2.5billion.

The currency swap deal is valued at 16 billion Renminbi (RMB) and about 720 billion in Naira. The deal is expected to reduce the demand for US dollar by Nigerians importing goods from China, and consequently strengthening the value of the Naira.

The agreement will also reduce pressure on the naira-dollar exchange rate by weaning Nigerian importers off the greenback in Africa's largest economy. A dollar is currently at N360 and the country has more than 3 exchange rates.

Also from Business Insider Sub-Sahara Africa:

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Top 10 African Countries with the highest inflation rates in 2022

Top 10 African Countries with the highest inflation rates in 2022

Organ Harvesting: Ekweremadu’s arrest in UK, what we know so far

Organ Harvesting: Ekweremadu’s arrest in UK, what we know so far

10 poorest African countries as of H1 2022, based on GDP per capita

10 poorest African countries as of H1 2022, based on GDP per capita

Tonto Dikeh nominated as deputy governorship candidate of Rivers State under ADC

Tonto Dikeh nominated as deputy governorship candidate of Rivers State under ADC

Inside the most expensive school in Ghana where kindergarten costs GHc176K a year

Inside the most expensive school in Ghana where kindergarten costs GHc176K a year

When and where to watch Super Eagles of Nigeria vs São Tomé and Príncipe

When and where to watch Super Eagles of Nigeria vs São Tomé and Príncipe

Owo attack: Buhari condemns killing of worshippers in Catholic Church

Owo attack: Buhari condemns killing of worshippers in Catholic Church

BREAKING: INEC confirms Machina, denies Lawan Yobe North senatorial seat

BREAKING: INEC confirms Machina, denies Lawan Yobe North senatorial seat

Owo massacre: Amotekun arrests suspects in connection with church attack

Owo massacre: Amotekun arrests suspects in connection with church attack