The development is aimed at facilitating enhanced trade between both countries, given the fact that China is Nigeria’s biggest trading partner. With the deal, Nigeria became the fourth country in Africa (after Ghana, South Africa and Zimbabwe) to sign on to Yuan for its trading and financial market transactions. Under the currency swap arrangement, trade between Nigeria and China will be denominated in a direct exchange between the Naira and China’s currency, the Rheminbi. The major questions on every analyst and even an average Nigerians’ minds are whether the currency swap is a good idea for the nation’s economy right now, does it bring any significant benefits? More important and most crucial is China’s acceptance to swap its currency with Nigeria’s Naira, an expression of confidence in the Nigerian economy, which is a good signal that Nigeria is back in business.

Source: Nigerian Tribune June 03, 2018 23:26 UTC