Nigeria’s Central Bank (CBN) sold yuan at a range of N49 and N51 at its first auction of the Chinese currency last week under the swap agreement with the People’s Bank of China.

Traders told Reuters on Monday, July 30, 2018, that the CBN sold Chinese yuan at immediate value for a 15-day settlement.

According to the report, some lenders got as much as 60% of the volume they applied for, while a bank got just 5%. They said the volume sold was based on the price quoted for the yuan at the auction.

The Acting Director, Corporate Communications at the CBN, Isaac Okorafor, confirmed the sales.

He explained that bids received from authorised dealers were only attended to, adding that the availability of Renminbi will ease pressure on the foreign exchange market.

Okorafor further assured that the bank was committed to ensuring that all the sectors continue to enjoy access to the foreign exchange required for their business concerns, be it the U.S. dollar or Chinese yuan.

On May 3, 2018, the Central Bank of Nigeria signed a bilateral currency swap agreement with the People’s Bank of China (PBoC) worth about $2.5 billion.

The currency swap deal is valued at 16 billion Renminbi (RMB) and about 720 billion in Naira. The deal is expected to reduce the demand for US dollar by Nigerians importing goods from China, and consequently strengthening the value of the Naira.