eebruboss:
The US and China are on the brink of trade war, this development would be a disaster for Nigeria and her relationship with the US, if China starts trade war with the US. This deal should have been better sealed after the US meeting with China, scheduled to take place this week, have been concluded. I'm sure we won't want anything to jeopardize our relationship with the US.

yns4real:
*Deal valid for three years, renewable

Obinna Chima

First Bank of Nigeria Limited, Stanbic IBTC, Standard Chartered Bank (SCB) and Zenith Bank Plc have been appointed the settlement banks for the $2.5 billion bilateral currency swap agreed between the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBoC) which was announced Thursday.

A reliable CBN source privy to the deal, said with the appointment of the four banks as the settlement banks for currency swap between China and Nigeria, they will be responsible for settling the trade transactions between importers and exporters from both countries, likely to take off just before next month.

The CBN Thursday announced that it had sealed the deal on the $2.5 billion (RMB 16 billion) currency swap with the Chinese central bank last Friday in Beijing, China.

CBN spokesman, Mr. Isaac Okorafor, said the CBN Governor, Mr. Godwin Emefiele, led CBN officials while PBoC Governor, Dr. Yi Gang, led the Chinese team at the official signing ceremony.

He said the deal was sealed on Friday after over two years of painstaking negotiations by both central banks.
According to the CBN, the transaction, which was valued at Renminbi (RMB) 16 billion, was aimed at providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby reducing the difficulties encountered in the search for third currencies.

Providing more clarity on the deal, a CBN source said just as negotiations on the currency swap were being wrapped up, the central bank appointed FirstBank, Stanbic IBTC, StanChart and Zenith Bank to serve as the settlement banks for businesses and importers from both countries.

She said the reason the four financial institutions were chosen was because StanChart and Stanbic already have operational offices in China, while Zenith and FirstBank have representative offices in Beijing.

However, whereas StanChart and Stanbic can start operations immediately as settlement banks, Zenith and FirstBank will be required to upgrade their representative offices to full operations in China.

“While SCB already has a presence in China through its Standard Chartered Bank (China) Limited, Stanbic has been trading in the country through its affiliate, the Investment and Commercial Bank China (ICBC).

“However, FBN and Zenith Bank were also appointed because they already have representative offices in China.
“So, while SCB and Stanbic can start immediately, it would take FBN and Zenith Bank some time to join the settlement arrangement because they would have to convert their representative offices to operational offices.
“This whole swap agreement would kick off likely before June because we have to operationalise the settlement arrangement with the relevant institutions,” she added.

The settlement banks are expected to handle the trade obligations that would enable an importer in Nigeria, after filling the required documentation, to easily exchange the naira for the Renminbi (RMB) instead of resorting to third currencies such as the U.S. dollar, while the reverse will be the case for importers in China that trade with Nigerian businesses.

She explained further that the currency swap by the two central bank governors was partly facilitated by the improving economic environment in Nigeria.

“As you know, negotiations have been on-going for two years, so yes to some extent, the improvement in foreign reserves and government revenues, drop in the inflation rate, and the uptick in economic activities, played a role in getting the swap with the PCoB.

“But this was not the only reason factored into the negotiations, as there were other bilateral reasons which I am not at liberty to disclose,” she said.

When asked about the impact on the country’s external reserves, the source pointed out that China is Nigeria’s largest trading partner, accounting for about 35 per cent of trade.

However, the National Bureau of Statistics’ (NBS) Fourth Quarter (Q4) 2017 Foreign Trade Statistics put China’s trade with Nigeria at 22 per cent, making it a major trading partner. The total value of trade in Q4 2017 was put at N465.13 billion.

According to the CBN source, the currency swap will play a role in reserves management as pressure from Nigerian importers seeking to source dollars will now dissipate.

“Of course, this will help in terms of management of our reserves. What this means is that pressure on Nigerian importers seeking to source dollars to import goods from China will completely dissipate,” she explained.

Reinforcing the position, the statement from Okorafor Thursday said among other benefits, the agreement is expected to provide naira liquidity to Chinese businesses and provide RMB liquidity to Nigerian businesses respectively, thereby improving the speed, convenience and volume of transactions between the two countries.

“It will also assist both countries in their foreign exchange reserves management, enhance financial stability and promote broader economic cooperation between the two countries.


https://www.thisdaylive.com/index.php/2018/05/04/fbn-stanbic-stanchart-zenith-appointed-settlement-banks-for-naira-rmb-currency-swap/amp/

userplainly:


we are our own problem! wen the goods arrive Nigeria, Nigerians will still increase the price to gain maximum profit!.... plus China produced goods are not durable! not one!.... from clothes to bags n shoes! Koreans are far better

johnmartus:
Why Zenith bank ? This central bank governor sef.

uzohrome:
Best move so far , It will make things easy I swear. I can buy stuff from alibaba and pay directly with naira equivalent to Yuan. Oya 2019 will be interested . baba trying by all means to gain our trust back. But road back to daura is non negotiable.

motherfucker:
yeah but they make the android phone you are using or the iPhone in your hand, the laptop you also have... Your bulbs, your switches

Most of you, instead expanding your horizon, you clung to age long falsehoods.

uzohrome:
Best move so far , It will make things easy I swear. I can buy stuff from alibaba and pay directly with naira equivalent to Yuan. Oya 2019 will be interested . baba trying by all means to gain our trust back. But road back to daura is non negotiable.

johnmartus:
GTB have operation office too ,so there is no rational explanation in his action.

Man2utd:


There is no good in this, how does that encourage local production, we are only enriching the Chinese and creating a knowledge vacuum. We need to be creative.

motherfucker:
yeah but they make the android phone you are using or the iPhone in your hand, the laptop you also have... Your bulbs, your switches

Most of you, instead expanding your horizon, you clung to age long falsehoods.

CSTR1003:

Those products are manufactured and imported from China.

The only exception is Apple. That is why it is very expensive.

SARMAT:




Nwanne mmadu u are wrong on that expect APPLE . THE SO CALLED APPLE people revers IS also manufactured in China by a company called FOXCONN BRoWSE IT TO CONFiRM. The only thing done in d US is to design it

winnah:


quiet......... most of the equipment used in Nigeria isn't it from china?
imagine paying your bills in china; with a direct exchange between naira and Yuan. without the stress of looking for a third currency to effect your payment.

i hope you know that what ever thing your purchasing in china your paying it with dollar.

we wont have to look for dollars to import things from china or pay school fees.
and Chinese wont have to look for dollars to effect payment too to Nigeria.

it will increase the demand for naira too.

CSTR1003:

I thought so too.

Because I remembered there was an accusation that they use slave labour in assembling those iphones.

CSTR1003:

Those products are manufactured and imported from China.

The only exception is Apple. That is why it is very expensive.

castrokins:
I'm Worried About Substandard Products From China. Our Standards Have Been Bastardised. Weak Institutions Everywhere. What's The Use Of SON In This Country?

motherfucker:
you are wrong.

Blame the inferior products on your Nigerian brothers. It all about what you want.
I noticed that the rechargeable lambs sold how are of poor quality as it doesn't hold much charges for a few hours no matter how much you charge it.

As yourself why? This same product used to be the darling of end users.

The reason is the toxic nature OT Nigerians who dilute quality with substandard.

The substandard products are also sent here because SON is paper tiger that lacks the wherewithal that can standardize products for consumers. I am pretty confident they don't even have the basic technology to assert their authority.

So bros, blame your Nigerians, no China. Nigerians requested for the to substandard products, they ask Chinese to make it so.

Zane2point4:


Norhing wrong with that, you can't bring in original costly product to a average country like nigeria.
Can you buy a pair of jean for 20k?

Redoil:
Buhari the coward will never be brave to try this with usa just to favour china

BlackAfrican:
Where are those wailers who said this deal was just on paper?

Buhari till 2023... If you don't like it go and stand in front of an incoming train...

johnmartus:
GTB have operation office too ,so there is no rational explanation in his action.

userplainly:


we are our own problem! wen the goods arrive Nigeria, Nigerians will still increase the price to gain maximum profit!.... plus China produced goods are not durable! not one!.... from clothes to bags n shoes! Koreans are far better

uzohrome:
Best move so far , It will make things easy I swear. I can buy stuff from alibaba and pay directly with naira equivalent to Yuan. Oya 2019 will be interested . baba trying by all means to gain our trust back. But road back to daura is non negotiable.

CSTR1003:
Those products are manufactured and imported from China.
The only exception is Apple. That is why it is very expensive.

SARMAT:




Nwanne mmadu u are wrong on that expect APPLE . THE SO CALLED APPLE people revers IS also manufactured in China by a company called FOXCONN BRoWSE IT TO CONFiRM. The only thing done in d US is to design it