The central banks of Ethiopia and Nigeria, according to a report by Bitcoin.com, have consummated a $100 million currency swap.
Under the arrangement, Ethiopian airliner was paid local currency equivalent to $100 million while Dangote cement is said to have received a similar amount in naira.
The arrangement is due to inability of the airline to repatriate funds trapped in Nigeria, as well as Dangote cement’s profits which were similarly stuck in Ethiopia.
According to the report, the two central banks resorted to the swap transaction because the arrangement obviates the need of using U.S. dollars to effect the funds repatriation.
The arrangement was reportedly seamless, and has opened up vistas of business freedom to other African countries, in view of forex scarcity.