The Central Bank of Nigeria (CBN) on Friday published the long-awaited regulatory guidelines for prospective operators under the bilateral currency swap agreement between Nigeria and China.

The guidelines titled: “Regulations for Transactions with Authorised Dealers in Renmnbi” was signed by CBN Director, Financial Markets Department, Alvan Ikoku, and published on the bank’s website.

Mr Ikoku said the regulations which were part of CBN’s statutory mandate, were in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) LFN 2004 (as amended) and the CBN Act 2007.

The guidelines said the swap agreement was for a maximum of 15 billion Chinese Yuan for N720 billion with a three year tenor.

The currency swap agreement allows the central bank and the Peoples Bank of China (PBoC) to, among other purposes, provide liquidity in their respective currencies, to facilitate and promote trade and investments across the two countries.

The regulation, which identified deposit money banks and merchant banks as authorised dealers, also spelt out the purposes for which the currency swap shall be used.

They include to finance trade and direct investment between China and Nigeria; maintain financial stability as well as other purposes that both countries may agree upon.

Besides, the regulations stipulated that the objectives of the swap deal could be achieved through the purchase, sale and subsequent repurchase and resale of the Chinese Yuan against Nigeria’s Naira and vice versa.
To realise these objectives, the guidelines said the CBN may conduct bi-weekly Renminbi bidding sessions where the currency sales shall be applicable only to trade-backed transactions.

Those qualified to apply for access to the CBN bi-weekly Renmibi bidding include all authorised dealers that open Renminbi accounts with a correspondent bank and advise the CBN with their Renminbi account details. The bank may be a bank onshore or offshore China.
Others are importers intending to import from China and have obtained Proforma Invoices denominated in Renminbi as part of the documents required for the registration of Form M.

Each authorised dealer will earn not more than 50 kobo on every customer’s bid.


“Authorised dealers shall not open domiciliary accounts denominated in Renminbi for customers. No bank is allowed to endorse or pay based on documents not properly routed in compliance with the regulations,” Mr Ikoku said.

The regulation listed the modes of payment under the deal, which shall be in line with memorandum 9 of the FOREX manual, letters of credit or all negotiated shipping documents routed from the beneficiary/suppliers through his or her bank to the issuing bank.

While importers and exporters shall continue to pay applicable levies on imports and exports, authorised dealers would be required to utilise the funds within 72 hours from the values date, failing which such funds must be returned to the CBN for repurchase at the bank’s buying rate.

The CBN is expected to debit authorised dealers’ current account on the day of intervention with the Naira equivalent of Renminbi bid request.

On bills or collection transactions, the guidelines said documents must be routed to the issuing bank either directly from the supplier’s bank or the offshore correspondent of the issuing bank.

Besides, documents marked “not valid” for foreign exchange transactions shall be routed by the supplier directly to the applicant’s bank that validates the underlying E-form M.

https://www.premiumtimesng.com/business/271756-cbn-issues-guidelines-for-china-nigeria-currency-swap-deal.html

Mynd44 Lalasticlala

Can't wait to start buying all my stuff from aliexpress rather than those American sites




Will soon be feeling like a boss

Lies and too much placebos are becoming too much in this buhary govt.
How long will this buhary govt takes us for granted by pouring poo on the poor masses
If you think the usa will allow their currency to be jettison in favour of chinko currency then you are the dullest and dumbest of all dullard in the whole world.

Power has moved to the East, the americans know this very well.
Uncle sam is just flexing muscles to buy more time, but it's too late.

A China/Russia/SCO alliance has changed the game.

TIME WILL TELL...

Farewell Occident, Hello Orient!

Redoil:
Lies and too much placebos are becoming too much in this buhary govt.
If you think the usa will allow their currency to be jettison in favour of chinko currency then you are the dullest and dumbest of all dullard in the whole world.

Ok

this is Nigeria

An "ordinary" Nigeria cant have access to it as usual. If u think u will be getting RMB from them to buy your petty petty goods on Aliexpress, u are joking.

I want to see the benefits of the deal translate meaningfully to the masses on the streets of Ibadan, Abakaliki, Otukpo, Sokoto, Nguru, Birnin Kebbi, Asaba or Ikom.

Until then f*** the deal mehn!!

decatalyst:
Can't wait to start buying all my stuff from aliexpress rather than those American sites




Will soon be feeling like a boss

What does your buying on aliexpress have to do with a countries currency swap ??

Do you know what a currency swap is

A currency swap is just a hedge exposure to reduce the cost of borrowing from a foreign country

Is late Alvan Ikoku inscribed on the 10note still alive?

Oh! I just confirmed that now he is Dr Alvan Ikoku Jr, the son of the late Alvan Ikoku.

Abeg make una forgive my ignorance but, currency swap asin??... Nigeria go fit use Chinese yen �??

Redoil:
Lies and too much placebos are becoming too much in this buhary govt.
How long will this buhary govt takes us for granted by pouring poo on the poor masses
If you think the usa will allow their currency to be jettison in favour of chinko currency then you are the dullest and dumbest of all dullard in the whole world.

Can you just make a comment without making a fool of yourself, even your grammar construct is appalling. You just brandish your illiteracy majestically. sorry for you

God bless u baba....... Continue ur good work.......

Hdh

next...

bamidelevictor:
Abeg make una forgive my ignorance but, currency swap asin??... Nigeria go fit use Chinese yen �??

yes sir.. but you have to look for a Chinese and exchange your naira notes with him first..

OK

Abeg do am quick na. I wan do testing! testing!! 1, 2 , chin! chin!!

Cheaper goods.
If minimum wage can afford the basics.

I still dnt undastnd

Am still wondering how this deal will favour Nigerian economy






You've got ITunes or Amazon gift card to sell? Or you need data at a ridiculous cheap rate?? Check my signature

Whr u dey go, they have not finalised d deal now

Fukafuka:

Apelex:


What does your buying on aliexpress have to do with a countries currency swap ??

Do you know what a currency swap is

Big English as usual. Which benefits none of the masses.

Redoil:
Lies and too much placebos are becoming too much in this buhary govt.
How long will this buhary govt takes us for granted by pouring poo on the poor masses
If you think the usa will allow their currency to be jettison in favour of chinko currency then you are the dullest and dumbest of all dullard in the whole world.

To hell with USA

agarawu23:
this is Nigeria

An "ordinary" Nigeria cant have access to it as usual. If u think u will be getting RMB from them to buy your petty petty goods on Aliexpress, u are joking.

Lol he is obviously joking to wanting to buy petty items with FG rmb for Naija for dat matter

.... I wan be the First to SWAP currency for Naija history naa !

olametrix:

Whr u dey go, they have not finalised d deal now