Saturday, May 5, 2018

China appears to be enticing another OPEC nation to the Petroyuan as Nigeria agrees to begin currency swaps

It has been a little more than a month since China officially began offering oil futures contracts denominated in the Yuan currency, but early results continue to be positive for this contract to over time take more and more market share from the West and the Petrodollar.  And with Iran, Qatar, and even Venezuela having already agreed to buy and sell their oil in currencies other than the dollar, a new currency swap agreement signed on May 3 between Nigeria and China could mean that a fourth OPEC nation could also soon be leaving the Petrodollar.

The Central Bank of Nigeria (CBN) has signed a currency swap deal worth about $2.5 billion with the People’s Bank of China to provide adequate local currency liquidity for transactions between national businesses, The Punch newspaper reported on Thursday, citing a high-ranking official from the Central Bank of Nigeria (CBN). 
The deal that is the result of two-year tense talks, aimed at facilitating bilateral trade, investments and strengthening of the financial stability of both nations as well as reducing difficulties related to the use of third currencies in mutual business transactions. – Sputnik News

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