Chinese traders are now accepting the Nigerian naira (NGN) as a form of payment instead of the US dollar (USD) due to a currency swap agreement between Nigeria and China. This move aims to boost trade between the two countries and strengthen the naira.
The agreement allows for direct exchange between the naira and China’s yuan, reducing reliance on the US dollar. Peer-to-peer transactions are now possible, bypassing traditional banking intermediaries. As a result, the naira has appreciated to ₦1,526.09 per dollar, its strongest level in six weeks.
This development could streamline imports, stabilize exchange rates, and boost bilateral trade between Nigeria and China, with China being Nigeria’s top trading partner. The Nigerian government attributes this change to President Bola Tinubu’s economic reforms, noting that it restores confidence in the naira both locally and internationally. Chinese e-commerce platforms now also accept naira cards.
