The Naira’s recent strength against the US dollar can be attributed to the renewed trust in the Nigeria-China currency swap deal. According to Aminu Gwadabe, National President of the Association of Bureau De Change Operators of Nigeria (ABCON), Chinese investors and traders in Nigeria are now accepting Naira for Yuan through peer-to-peer (P2P) transactions instead of using the dollar.
Nigeria and China signed a $2 billion currency swap deal to strengthen bilateral trade and investment between both countries. Chinese nationals in the mining sector are already conducting daily business in Naira, and P2P transactions are being used to exchange Naira for Yuan.
This move aims to reduce Nigeria’s dependence on the US dollar for trade with China, promoting bilateral trade in local currencies.
China is Nigeria’s largest trading partner, with a trade volume of $22.6 billion in 2023.
As of Tuesday, the Naira traded at N1,526.06 per dollar, showing a steady gain.
The Nigeria-China currency swap deal is expected to
Enhance economic ties between Nigeria and China by facilitating trade and investment reduce the Naira’s volatility by decreasing dependence on the US dollar.
The move will also foster trade between Nigeria and China, leveraging their strong economic partnership.
