China's central bank said Thursday that it has inked a currency swap agreement with its counterpart in Nigeria.
The agreement will allow the two sides to swap a total of 15 billion Chinese yuan (2.35 billion U.S. dollars) for 720 billion Nigerian naira, or vice versa, in the next three years, the People's Bank of China (PBOC) said on its website.
The move is aimed at facilitating bilateral trade and investment and promoting the financial stability of both sides, the PBOC said. The deal can be extended by mutual consent.
A currency swap deal allows two institutions to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide liquidity support to financial markets.