CBN to Revive Local Currency Trade Scheme for Regional Transactions

The Central Bank of Nigeria (CBN) is set to relaunch a local currency trade scheme to strengthen regional transactions by allowing bilateral trade in local currencies, reducing dependence on the US dollar. Olayemi Cardoso, speaking during the IMF and World Bank annual meetings in Washington D.C., highlighted the goal of reducing foreign exchange risks and transaction costs.

Nigeria previously engaged in a currency swap agreement with China in 2018, aiming to ease pressure on dollar reserves and facilitate trade with the yuan. The renewed effort aims to ensure mutual benefits, enhance the competitiveness of the naira, and promote a stable market environment.