Substandard goods not covered under Nigeria-China currency swap deal – CBN



The Central Bank of Nigeria (CBN) has ruled out dealers and importers of substandard goods in the currency swap agreement with the People’s Bank of China (PBoC).

The Governor of the Central Bank (CBN) Mr. Godwin Emefiele, made this known on Wednesday, during the Currency Swap Forum for North Central Zone.

The forum which brought together stakeholders in the trade sector including importers and exporters, sensitized them on the conditions and benefits of trading under the new Reminbi denominated window.


[penci_blockquote style=”style-2″ align=”none” author=””]He said only goods approved by regulatory bodies such as Standards Organisation of Nigeria would qualify under the agreement.[/penci_blockquote]

The CBN and PBoC sometime this year, signed a three-year renewable bilateral currency swap deal worth about N720 billion or 15 billion Renminbi.

The aim of the deal was to facilitate trade between Nigeria and China and ensure stability in the foreign exchange market, among others.

The CBN governor who was represented by the bank’s acting Director, Corporate Communications, Mr. Isaac Okorafor, said the swap deal had the potential to reduce importation of substandard goods.


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He said only goods approved by regulatory bodies such as Standards Organisation of Nigeria would qualify under the agreement.

“If there is anybody that thinks he or she will collect Renminbi through this window and sell on the street, the person is sadly mistaken.

“Transactions under the deal will be done electronically and this deal is only for products that originate from China.

“It does not apply to any transaction in Asia, outside the Chinese territory”.

In his remarks, the CBN Assistant Director, Financial Market Department, Mr. Oreva Eweh, alluded to speed and efficiency as some of the benefits of trading under the Renminbi denominated window for transactions with China.

An official of the CBN Trade and Export Department, Mr. Richard Maikai, spoke on the documentation requirements under the agreement.

“Importers intending to import from China must obtain pro forma invoice denominated in Renminbi as part of the documents required for registration of Form M.

“Also, the foreign exchange window cannot be used for payments on transactions in which the beneficiaries are not in China.

“In addition, authorised dealers shall not open domiciliary accounts denominated in Renminbi for customers,” he said.

Maikai disclosed that Bureau de Change operators were not eligible to take part in the transaction as cash transactions would not be allowed under the window.

Earlier, the Director-General, Abuja Chamber of Commerce and Industry, Mines and Agriculture (ABUCCIMA), Mr. Adetokunbo Kayode, said the currency swap deal would make doing business easier for his members.

He called on the government to implement favourable business policies to fast-track economic growth in the country.

Official exchange rate for Naira-USD stands at N306.05 to a dollar while one Chinese Yuan exchanges for N44.45 in the official market.

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