The swap deal was signed between The Central Bank of Nigeria (CBN) and People’s Bank of China (PBOC) on April 27, 2018 to ease demand pressure on the country’s supply of foreign exchange.
1 Chinese Yuan is equivalent to 52.46 Nigerian naira. This currency Swap is favourable to Nigerians since China accounts for a quarter or more of the importations to Nigeria, so instead of dealing with China in Dollars, we would deal with them in Yuan which is way cheaper than Dollars.
This deal would make things cheaper. For example, Goods that was sold at the rate of #200,000 would drop down to the rate of #50,000 presumably on the condition that the goods are imported from China.
CBN declared that the deal would not cover substandard goods which includes the initially banned 41 items from the Nigerian Foreign Exchange Market. Some of the banned items we’re rice, canned fish, cement, poultry, furniture and so on, in order to promote local production and avoid making Nigeria the dumping area for China.
On the long run, this is a favourable deal for we Nigerians.