On Friday, April 27, 2018, Nigeria announced that it had entered into a currency swap deal with China.

Here are Top 7 facts every Nigerian importer doing business with China should know about the Nigeria-China currency deal.

#1: The Adoption of Yuan As Bilateral trading Currency:

In 2016, Nigeria’s President Muhammadu Buhari led a Nigerian delegation to China. The outcome of that trip opened negotiations between the financial authorities of both countries on adoption of the Yuan as the bilateral trading currency. This deal is a culmination of that negotiation.

Before the Chinese government started taking steps to make the RMB a globally traded currency, international business owners routinely paid Chinese partners in their domestic currency, because it was the only legal option available.

“For decades, if [a foreign small business] was doing business in China, chances are they were making payments in the U.S. dollar because the Chinese government did not allow businesses to be paid in the Renminbi,” says Alfred Nader, Vice President of Corporate Strategy and Development at Western Union Business Solutions.

#2: Improved Economic Co-operation Between Nigeria and China:

China is one of Nigeria’s largest trading partners, with trading volumes between both countries totaling $12.3bn in 2017. This agreement will help to further improve economic cooperation between the two countries.

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