Naira Appreciation: BDC Operators Credit Nigeria-China Currency Swap

The President of the Association of Bureau De Change Operators, ABCON, Aminu Gwadabe, has attributed the recent stability and appreciation of the Nigerian currency to a renewed confidence in the existing Nigeria-China currency swap deal. This development has seen a shift in business practices, with Chinese traders in Nigeria increasingly favoring the Naira for transactions over the US Dollar.

Gwadabe explained that Chinese nationals, particularly within the mining sector, are now conducting their day-to-day business directly in Naira through peer-to-peer (P2P) transactions. He noted this trend, stating, “The Chinese are now accepting naira for yuan through peer-to-peer (P2P) transactions.” The BDC leader emphasized the efficiency of this arrangement, as it eliminates the need for importers to use a third currency like the US Dollar to complete transactions with China.

The currency swap framework, which was renewed to enhance trade, provides a more seamless financial process between the two nations. This has contributed to the naira’s continued positive performance against the dollar, with the exchange rate now hovering around N1,526 per dollar.

Echoing this sentiment, presidential spokesperson Bayo Onanuga recently commented on the Naira’s strength, stating that the US dollar is no longer a “king” over the Nigerian currency.