The Central Bank of Nigeria has released guidelines for the recent currency swap deal it struck with China.
The apex bank in a circular on Friday explained that the swap agreement allows the CBN and the Peoples Bank of China (PBoC) to among other purposes make available liquidity in their respective currencies for the facilitation and promotion of trade and investmnets across the two Nations, through the purchase, sale and subsequent repurchase and resale of the Chinese Yuan (CNY) against the Niara and vice versa.
It said the CBN may conduct bi-weekly bidding sessions to achieve this.
It also pointed out that the deal is only applicable to trade backed transactions.
The agreement is for a maximum amount of15 billion yuan for 720 billion naira with a three-year tenor.
The Renminbi is the official Chinese currency while yuan is the basic unit of the renminbi. Yuan and Renminbi are however used interchangeably.
Below is CBN guidelines on eligibility of dealers a d mode of payment: