Nigeria and China are set to revive their local currency swap agreement in a bid to bolster trade between the two nations and contribute to global financial stability.
The move signals a renewed commitment to regional monetary and financial cooperation, according to a joint statement released during Nigerian President Bola Tinubu’s official visit to China.
The Central Bank of Nigeria (CBN) had previously signed a $2.4 billion bilateral currency swap deal with the People’s Bank of China (PBoC) in 2018, but the initiative faced implementation challenges due to trade imbalances.
Both countries are now determined to address those issues and foster a more flexible financial partnership. In addition to the currency swap, Nigeria and China have agreed to enhance cooperation on financial intelligence, with a focus on combating money laundering and terrorism financing.
Both nations aim to safeguard financial markets and crack down on financial crimes. During President Tinubu’s visit, Nigeria and China also signed a series of agreements and Memorandums of Understanding (MoUs) aimed at strengthening relations at the provincial and municipal levels.
