Renewal Of Currency Swap With China, A Landmark Achievement, Says Tegbe
The Nigeria-China Strategic Partnership (NCSP) has said that the renewal of the currency swap arrangement with China, valued at 15 billion yuan (about $2.2 billion), shows that the present administration of President Bola Tinubu has secured a significant milestone in Nigeria’s economic development.
Director-General and global liaison for the Nigeria-China strategic partnership the Nigeria-China Strategic Partnership (NCSP),
Joseph Tegbe said on Sunday that this landmark deal strengthens economic ties between the two nations, facilitates bilateral trade and investment, reduces reliance on the US dollar, and mitigates financial risks.
He noted the agreement, worth NGN 3.28 trillion, is a testament to the growing relationship between Nigeria and China, with trade value hitting N7.38 trillion as of June 2024. This makes China Nigeria’s number one trading partner, and the partnership is expected to boost bilateral trade and investment, creating new opportunities for economic growth and development.
He said the currency swap agreement is a crucial step towards achieving these goals. It signifies a deeper financial collaboration between the two central banks, enhancing financial market stability and providing businesses with more financing options and convenience. He added that by enabling direct settlement of transactions in CNY and NGN, Nigerian businesses will benefit from lower transaction costs and reduced exchange rate risks. This is a significant step towards achieving President Tinubu’s vision for a more prosperous and economically independent Nigeria, as outlined in his Renewed Hope Agenda.
He said establishing the Nigeria-China Strategic Partnership (NCSP) has been instrumental in fostering bilateral relations and promoting partnerships between the two nations. This development is a testament to President Tinubu’s commitment to expanding Nigeria’s foreign policy thrust. Specifically, it underscores the President’s importance to the comprehensive strategic partnership with the People’s Republic of China.
He said that President Tinubu’s administration deserves commendation for this significant achievement, which is expected to contribute to a more prosperous and economically independent Nigeria.
