CBN to lenders: Submit bid for Chinese Yuan

Image result for yuanThe Central Bank of Nigeria on Friday asked lenders to submit bids for the Chinese yuan, according to traders, in the first auction after it agreed a $2.5 billion swap with its Chinese counterpart in May.

The auction is part of an attempt to encourage the use of an alternative trading currency, particularly given the high level of imports from China, which amounted to $2 billion last year.

Traders cited a central bank memo to lenders and said the auction would be for spot and forward settlement and the exchange rate will be determined by a book building process. The bank said it will receive bids between 0800 and 1100 GMT.

Earlier this month, central bank officials held a town hall meeting with businesses to introduce the Yuan as an alternative to the Dollar for imports from China ahead of plans to start auctioning the Asian currency.