Nigeria and China have renewed their 15 billion Yuan ($2 billion) currency swap agreement for another three years, reinforcing economic ties and boosting trade between the two nations.

The People’s Bank of China (PBOC) announced the renewal in a statement on Friday, with provisions for further extension by mutual agreement.

The deal, first introduced to streamline trade transactions, allows direct exchange between the Chinese Yuan and Nigerian Naira without relying on the US dollar.

This initiative reduces transaction costs and supports smoother bilateral trade and investment.

Under the arrangement, both central banks will continue bi-weekly liquidity injections to facilitate the purchase, sale, and repurchase of Yuan and Naira.

This mechanism provides financial flexibility for businesses in both countries, encouraging cross-border trade and investment.

The renewal highlights the strengthening of economic cooperation between China and Nigeria, emphasizing a commitment to reducing dollar dependency while promoting sustainable trade relations.