The Central Bank of Nigeria (CBN) has committed a further 18 million yuan (US$2.6 million for renminbi-denominated letters of credit.

At the same time CBN also injected US$218.41 million into the retail Secondary Market Intervention Sales.

Agriculture and industry

The latest yuan funding for L/Cs is aimed at the agricultural and industrial sectors for raw material transactions.

In 2018, the CBN created a special window making funds available for renminbi denominated L/Cs (DC World News, 24 August 2018).

China in Africa

In August 2018 the CBN sold 69.86 million yuan (US$10 million) in its first auction of the Chinese currency.

Egypt and South Africa have also signed currency swap deals with China indicating increasing Chinese interest in trading on L/C terms with African counterparties.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.