The Central Bank of Nigeria (CBN) on Thursday released guidelines for
the bilateral Currency Swap agreement between Nigeria and China.
The CBN gave the guidelines in a document signed by the Director,
Financial Markets Department, Dr Alvan Ikoku and posted on its
The regulator, in document titled, “Regulations for Transactions with
Authorised Dealers in Renminbi,” said it might conduct bi-weekly
trading sessions to ensure liquidity for trade and direct investment
between the two countries.
The Apex bank in the guidelines mandated commercial banks and merchant
banks, authorised dealers to open Renminbi bank accounts and provide
details to the CBN.
The CBN said, “All Authorised Dealers shall open Renminbi accounts
with a corresponding bank and advise CBN with its Renminbi Account
details which may either be with a bank onshore or offshore China.
“Importers intending to import from China shall obtain Proforma
invoice denominated in Renminbi as part of the documents required for
the registration of Form M.
“FX purchase in the window shall not be used for payments on
transactions in which the beneficiaries are not in China.
“Authorised Dealers shall not open domiciliary accounts denominated in
Renminbi for customers.”
The CBN, however, said the deal would not stop levies on imports and
exports, while unused funds by authorised dealers more than 72 hours
would be returned to the apex bank for repurchase at the bank’s buying
It added that authorised dealers might not earn more than 50 kobo in a
The CBN on May 3 signed a bilateral Currency Swap agreement with the
People’s Bank of China (PBoC) worth about $2.5billion. In local
currencies, the swap is worth 15billion Renminbi (RMB) or N720billion.
The deal is expected to reduce the demand for US dollar by Nigerians
importing goods from China, and consequently strengthen the value of
The deal will reduce certain barriers for Nigerian importers of goods
from China as well as the cost of transactions in multiple currencies.