China’s central bank announced on Friday the renewal of a currency swap agreement with Nigeria’s Central Bank, valued at 15 billion yuan (approximately $2.09 billion or N3.28 trillion).
The agreement, confirmed by Nigeria’s Special Adviser on Information and Strategy, Bayo Onanuga, is set to last for three years, with the possibility of renewal based on mutual consent.
In a statement, the People’s Bank of China (PBOC)stated that the deal will enhance financial cooperation between the two nations. “This agreement will help deepen financial ties, expand the use of both currencies, and facilitate trade and investment,” the PBOC noted.
While the deal is seen as an effort to strengthen the economic relationship between China and Nigeria, some experts have raised concerns. Dr. Adebayo Odunsi, an economist, cautioned, “While this agreement may offer short-term benefits, it increases Nigeria’s financial dependence on China, potentially compromising its economic autonomy.”
The renewal of the currency swap is part of China’s broader strategy to enhance its economic influence globally, particularly in Africa. Critics argue that such agreements could result in long-term implications for countries like Nigeria, which may find themselves tethered to China’s economic policies.
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