CBN Issues Guidelines On Currency Swap Deal With China - Welcome to Uju Ayalogu's Blog

Breaking News

Post Top Ad

Thursday, 7 June 2018

CBN Issues Guidelines On Currency Swap Deal With China

CBN Issues Guidelines On Currency Swap Deal With China

File photo

The guidelines for the bilateral Currency Swap agreement between Nigeria and China, has been released by the nation's apex bank, CBN, to business men in the country.

The Central Bank of Nigeria (CBN), on Thursday, released guidelines for the bilateral Currency Swap agreement between Nigeria and China.

The CBN gave the guidelines in a document signed by the Director, Financial Markets Department, Dr. Alvan Ikoku and posted on its website.

READ ALSO :    BREAKING: Osinbajo escapes tragedy following chopper’s emergency landing

The regulator, in a document titled, “Regulations for Transactions with Authorised Dealers in Renminbi,” said it might conduct bi-weekly trading sessions to ensure liquidity for trade and direct investment between the two countries.

The Apex bank, in the guidelines, mandated commercial banks and merchant banks including authorised dealers to open Renminbi bank accounts and provide details to the CBN.

The CBN said, “All Authorised Dealers shall open Renminbi accounts with a corresponding bank and advise CBN with its Renminbi Account details which may either be with a bank onshore or offshore China.

“Importers intending to import from China shall obtain Proforma invoice denominated in Renminbi as part of the documents required for the registration of Form M.

“FX purchase in the window shall not be used for payments on transactions in which the beneficiaries are not in China.

“Authorised Dealers shall not open domiciliary accounts denominated in Renminbi for customers.”

The CBN, however, said the deal would not stop levies on imports and exports, while unused funds by authorised dealers more than 72 hours would be returned to the apex bank for repurchase at the bank’s buying rate.

It added that authorised dealers might not earn more than 50 kobo in a customer’s bid.

The CBN, on May 3, signed a bilateral Currency Swap agreement with the People’s Bank of China (PBoC) worth about $2.5billion. In local currencies, the swap is worth 15billion Renminbi (RMB) or N720billion.

The deal is expected to reduce the demand for US dollar by Nigerians importing goods from China, and consequently strengthening the value of the Naira.

The deal will reduce certain barriers for Nigerian importers of goods from China as well as the cost of transactions in multiple currencies.

(NAN)

READ ALSO :    May 29 Will Remain Inauguration Day For Presidents - Senate Insistes

Are you an artiste? Do you want your music to go viral and reach a large number of audience? Promote your music and Submit your story on Ujuayalogusblog.com by clicking here. For Advert Inquiries Tel/+44(0)7590363984 Subscribe to Ujuayalogusblog.com

For More:  Visit Us at Uju Ayalogu's Blog

Share This

No comments:

Post a Comment

Post Bottom Ad

Pages