“We Will Renew”: CBN Replies Falana on Nigeria-China Currency Swap Deal as Naira Hits N920/$ at Black Market
- The Central Bank of Nigeria has responded to Femi Falana, a human rights lawyer, following a Freedom of Information (FOI) request
- The request was for the details of the Nigeria-China currency swap agreement, which is set to expire soon
- Godwin Emefiele, the suspended governor of the CBN, led the bank's officials during the official signing ceremony in Beijing, China
The Central Bank of Nigeria (CBN) has responded to Femi Falana on the Nigeria-China currency swap agreement.
Falana, a human rights lawyer in June 2023, sent a Freedom of Information (FOI) request to the CBN to disclose the details of the currency swap agreement.
Falana was concerned that despite the currency swap agreement, the federal and state governments and the business community were “prevented from transacting business in naira and yuan.
Source: Facebook
Godwin Emefiele, the suspended governor of the CBN, with other CBN officials in 2018, and Yi Gang, the People's Bank of China (PBoC) governor, signed the currency swap agreement after two years of negotiations.
The deal aimed to provide adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses.
Also, the agreement is expected to help Nigerian manufacturers and small Nigerian businesses export and import easily, the Cable reports.
CBN replies on Nigeria-China currency swap agreement.
Providing details based on the FOI request, the apex bank disclosed that it has 5.10 billion Chinese yuan (CNY) out of the 6 billion utilised from the Nigeria-China currency swap agreement.
The agreement is renewable every three years, and CBN also announced its intention to renew it next year.
CBN's reply reads:
“Subsequent to its renewal, a total of CNY9.00 billion had been accessed, with CNY6.00 billion put to use and CNY3.00 billion left as outstanding.
"Among the CNY6.00 billion utilized, CNY5.10 billion had been repaid, while CNY2.10 billion remained unutilised. There is a balance of CNY900.00 million that is yet to be repaid.
"Furthermore, the next renewal is expected to occur in 2024."
Naira falls
Meanwhile, the naira's exchange value dropped to a new low of N920 against the dollar at the parallel foreign exchange (FX) market segment on Tuesday, August 29, 2023.
Dealers were buying from willing sellers at N915/$ while selling at N920/$ to willing buyers.
45 failed banks in Nigeria and dates of closure
In another report, Legit.ng revealed that in the last 28 years, approximately 46 commercial and merchant banks have closed down for various reasons.
The banks had their licenses revoked by the Central Bank of Nigeria between 1994 and 2006.
United Bank of Africa and Ecobank took control of the failed commercial banks.
Source: Legit.ng
