Currency swap to reduce importation of fake goods ― CBN

CENTRAL Bank of Nigeria (CBN) on Wednesday said the implementation of currency swap agreement with China will drastically reduce importation of fake and substandard goods from the Asian country.

Acting Director of Corporate Communication at CBN, Mr. Isaac Okorafor gave this indication at a sensitisation forum on Bilateral Currency Swap Deal with the Peoples Republic of China organised for stakeholders in the North Central Zone in Abuja.

According to him, only goods approved by standard regulatory bodies in both countries would qualify for import and export under the agreement.

“If there is anybody that thinks he or she will collect Renminbi through this window and sell on the street, is sadly mistaken.

“Transactions under the deal will be done electronically and this deal is only for products that originate from China.

“It does not apply to any transaction in Asia, outside the Chinese territory,” he said.

Some of the other benefits accruable from the deal as identified by other CBN officials at the event include the elimination of third-party currency in import and export between Nigeria and China and speed and efficiency as some of the benefits of trading under the Renminbi-denominated window for the transaction with China.

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On documentation requirements under the agreement, the business community was informed that importers intending to import from China must obtain proforma invoice denominated in Renminbi as part of the documents required for registration of Form M.

The deal, however, is not eligible for payments of transactions in which the beneficiaries are not in mainland China and its immediate affiliates.

Authorised dealers are also not permitted to open domiciliary accounts denominated in Renminbi for customers.
And since cash transactions will not take place as part of the deal, it will not involve Bureau de Change (BDC).

Speaking earlier in an opening address, President of Abuja Chamber of Commerce and Industry, Mr. Adetokunbo Kayode had commended both CBN and Federal Government for the currency swap innovation.

“These types of initiatives will continue to expand the economy and provide for Nigerians, take care of our welfare and provide employment.”

He urged importers and exporters to take full advantage of it.