THE NATION
China has announced its support for Nigeria’s request to increase the currency swap line and has backed plans for Nigeria to issue Panda bonds, signalling stronger financial cooperation between the two nations.
Chinese Foreign Affairs Minister Wang Yi disclosed this on Thursday at the Presidential Villa in Abuja after meeting with President Bola Tinubu.
He emphasised that the currency swap agreement and potential bond issuance would bolster Nigeria’s revenue, enhance safety, and deepen bilateral ties.
“The currency swap agreement shows how well we have carried out our financial cooperation and sustained its momentum. Regarding Nigeria’s wish to increase the currency swap line, we will favourably study and consider the issue. Our cooperation is progressing well in many ways, especially in finance,” Wang Yi stated.
The currency swap agreement, initially signed in 2018, facilitates trade between the two nations by allowing transactions to occur directly in Chinese yuan and the Nigerian naira.
This expansion, if approved, is expected to ease liquidity issues and boost trade.
Wang Yi also welcomed Nigeria’s plan to issue Panda bonds, a type of renminbi-denominated bond issued by non-Chinese entities in China’s domestic market.
“We welcome Nigeria to issue Panda bonds in China because we have full confidence in Nigeria’s credibility. By issuing Panda bonds, Nigeria will gain good revenue, and safety is guaranteed through financial support,” Wang Yi remarked…
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