Three banks, namely First Bank of Nigeria Limited, Stanbic IBTC, Standard Chartered Bank (SCB) and Zenith Bank Plc, have been appointed the settlement banks for the $2.5 billion bilateral currency swap between the Central Bank of Nigeria and the People’s Bank of China.
ThisDay said a source in the know of the deal revealed the appointment. The banks will be responsible for settling the trade transactions between importers and exporters from both countries. The source allegedly said FBN and Zenith Bank currently have representative offices in China, but would take till June before they can begin operation.
“So, while SCB and Stanbic can start immediately, it would take FBN and Zenith Bank some time to join the settlement arrangement because they would have to convert their representative offices to operational offices.
“This whole swap agreement would kick off likely before June because we have to operationalise the settlement arrangement with the relevant institutions,” said the source.
On Thursday, Issac Okorafor, the spokesperson for the CBN, announced the $2.5 billion (RMB 16 billion) bilateral currency swap with the Chinese Central Bank. The deal, Okorafor explained, took two years before its finalisation.