Nigeria has renewed its bilateral currency swap agreement with China, reinforcing financial and economic ties between the two countries.

The Central Bank of Nigeria (CBN) and the People’s Bank of China (PBOC) confirmed the renewal on Friday. The agreement, valued at N3.28 trillion (approximately 15 billion yuan or $2.09 billion), is valid for three years and includes provisions for future extensions upon mutual agreement.

The currency swap facilitates direct transactions between the Nigerian naira and the Chinese yuan, minimizing reliance on third-party currencies like the U.S. dollar. This move is expected to ease currency accessibility for businesses, streamline trade processes, and lower transaction costs, further enhancing trade and investment between the two nations.

In a statement, the PBOC emphasized the agreement’s role in bolstering bilateral trade and fostering economic cooperation. The initiative aligns with China’s efforts to internationalize the yuan while supporting the naira’s stability in global markets.

The renewed agreement also reflects a growing shift toward alternative trade settlement methods, paving the way for a more diversified and inclusive global financial system. Both nations view the collaboration as a significant step toward sustainable economic growth and deeper integration in trade relations.