“It is a mere trifle,” Dr Bongo Adi, who runs a Faculty at the Lagos Business School (LBS), told The Guardian in a telephone conversation on the Currency Swap Agreement. The currency swap deal was meant to close the gap through quicker technology transfer. In principle, currency swap eliminates the transaction costs associated with double conversion, ease pressure on currencies involved and increase trade turnaround. Uwaleke argued that the currency swap deals could only benefit both parties where trade between the countries was fairly balanced. “As a result, we will have to fund that Chinese currency account with dollars instead of the Chinese payment into the account.

Source: The Guardian July 30, 2020 04:30 UTC