The implementation of the currency swap deal between Peoples Bank of China and Nigeria’s Central Bank is in full gear.

The first auction of the Chinese currency took place early this month.

And on Friday, the CBN asked banks to submit bids for the Chinese yuan, according to currency traders, in its second auction of the currency.

In May, the central bank signed a $2.5 billion three-year currency swap deal with Beijing to facilitate trade between the two countries and cut dependence on the dollar.

Also Read: CBN Says No Need To Panic Over Falling Dollar Reserves

It sold 69.86 million yuan ($10.16 million) in its first auction of the Chinese currency two weeks ago at a range of 49-51 naira.

The auction is part of efforts to encourage the use of an alternative trading currency to the U.S. dollar especially as Nigeria imports heavily from China.

Bids at the auction must be backed by customer invoices, traders said, with the exchange rate determined via a book building process.

The CBN bank also auctioned the U.S. currency on Friday, traders said.

The naira, which is traded over the telephone, has been quoted at a range of 362 to 363 per dollar, and analysts say it could ease to 364 next week owing to tight liquidity on the interbank market.

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