Currency swap: CBN repays 5.10bn Yuan ahead of Nigeria-China renewal deal

The Central Bank of Nigeria (CBN) says it has repaid 5.10 billion Chinese yuan (CNY) out of the six billion utilized from the Nigeria-China currency swap agreement, expected to be renewed next year….CONTINUE READING

The apex bank disclosed this in a response note to Femi Falana, a human rights lawyer, who, in June 2023, sent a Freedom of Information (FOI) request to the CBN to disclose the details of the currency swap agreement.

According to the CBN, the currency swap agreement commenced in July 2018. It expired and was renewed in April 2021. CNY 15.00 billion was the overdraft amount usable within the year.

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Africa’s largest economy’s Central Bank said the swap deal is renewable every three years.

“Since its renewal, CNY9.00 billion had been drawn, CNY6.00 billion utilized and CNY3.00 billion outstanding, and out of the CNY6.00 billion utilized, the sum of CNY5.10 billion had been repaid, while the sum of CNY2.10 billion had not been utilized, leaving the sum of CNY900.00 million yet to be repaid.

Furthermore, the next renewal is expected to take place in 2024,” the CBN said in response to Falana, as reported by the Cable.

Falana was concerned that despite the currency swap agreement, the federal and state governments and business community have been “prevented from transacting business in naira and yuan”.

Godwin Emefiele, suspended governor of the CBN, led CBN officials. In contrast, Yi Gang, PBoC governor, led the Chinese team at the official signing ceremony in Beijing, China, on April 27, 2018, a culmination of over two years of painstaking negotiations by both central banks….CONTINUE READING