We Will Renew 15 Billion Yuan Currency Swap Deal With China Next Year, CBN Replies Falana

The Central Bank of Nigeria (CBN) said of its 15 billion yuan currency swap agreement with the Peoples Bank of China (PBoC), about 3 billion yuan has not been utilised.

This disclosure is coming after Femi Falana, a Senior Advocate of Nigeria alleged that the CBN is yet to renew its currency swap agreement with China.

The agreement was signed in May 2018 by the suspended CBN Governor Godwin Emefiele, and the former PBoC governor Yi Gang, to be renewed every three years.

But Falana insisted that the deal hasn’t been renewed and sent a Freedom of Information (FOI) request to the CBN to disclose the details of the currency swap agreement.

In response to Falana’s FOI, the Apex Bank said, the deal was renewed after it expired in April 2021 and will be renewed next in 2024.

“The swap commenced in July 2018, expired in April 2021, and was subsequently renewed. The sum of Chinese yuan (CNY) 15.00 billion was the overdraft amount usable within the year.

“Since its renewal, CNY9.00 billion had been drawn, CNY6.00 billion utilised, and CNY3.00 billion outstanding.

“And out of the CNY6.00 billion utilised, the sum of CNY5.10 billion had been repaid, while the sum of CNY2.10 billion had not been utilised, leaving the sum of CNY900.00 million yet to be repaid.

“Furthermore, the next renewal is expected to take place in 2024” the bank’s replied read.

A currency swap is a transaction in which two parties exchange an equivalent amount of money with each other but in different currencies.

Through this process, both the Chinese and Nigerian currencies are to be made directly available to industrialists and other businesses from both countries for ease of trade.