[News] Central Bank of Nigeria (CBN) >> Framework For China Currency Swap Out Next Week

Central Bank of Nigeria (CBN) boss Godwin Emefiele has said the framework for the $2.5 billion currency swap agreement with the Peoples Bank of China (PBoC) will be out next week.

Emefiele noted this on Tuesday while addressing the press at the end of the Monetary Policy Committee (MPC) meeting in Abuja.

According to him, the “Currency swap between the Central Bank of Nigeria and the People’s Bank of China will ease pressure in the foreign exchange market by the reduction in reliance in a third currency for trade settlement between Nigeria and China.”

He added that the framework will be the backbone of an expanded economic relationship between Nigeria and the Asian country.

The CBN boss also said the apex bank has retained the Monetary Policy Rate (MPR) at 14 per cent, along with all other policy parameters.

Emefiele said the bank had left Cash Reserve Ratio (CRR) at 22.5 per cent; Liquidity Ratio at 30 per cent and asymmetric corridor at +200/-500 basis points around the PMR.

Furthermore, he disclosed that the decision to hold the rate was to allow the monetary authorities see how the implementation of the 2018 budget and other policy measures would impact the economy in the second quarter.