This is the guideline on how to use the Naira China Yuan swap deal – Central Bank

Nigeria CBN releases guideline on the use of Naira China Yuan
swap deal, says fund must be used within 72 hours
The Central Bank of Nigeria (CBN) says funds received under the
Naira-Yuan Swap Agreement must be utilised within 72 hours.
In a document titled Regulations for Transactions with Authorised
Dealers in Renminbi, the apex bank said funds not utilised within
the period must be returned for repurchase.
The document, which was released on Thursday, was signed by
Alvan Ikoku, director, financial markets department.
The regulator said it might conduct bi-weekly trading sessions to
ensure liquidity for trade and direct investment between the two
countries.
In the guidelines, all commercial and merchant banks were
mandated to open Renminbi bank accounts and provide details to
the CBN.
Nigeria had signed a Naira-Yuan swap deal worth $2.5billion with
China to reduce the demand for dollars by Nigerians importing
from China, reduce barriers and cost of transactions.
“Authorised dealers shall open Renminbi accounts with a
corresponding bank and advise CBN with its Renminbi account
details which may either be with a bank onshore or offshore
China,” CBN said.
“Importers intending to import from China shall obtain Proforma
invoice denominated in Renminbi as part of the documents
required for the registration of Form M.
“FX purchase in the window shall not be used for payments on
transactions in which the beneficiaries are not in China.
“Authorised dealers shall not open domiciliary accounts
denominated in Renminbi for customers.”
The apex bank said the deal will not affect import and export
levies. Authorised dealers were also warned that they might not
earn more than 50 kobo in a customer’s bid.

4 Comments

  1. Good update

  2. Nice post

  3. Ok

  4. Good

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