Chinese ambassador backs plan to convert Nigerian foreign reserves from dollars to Yuan

on October 29, 2014 / in Business 6:26 pm / Comments

Abuja – The Chinese Ambassador to Nigeria, Mr Gu Xiaojie, has expressed support for the plan by the Central Bank of Nigeria (CBN) to convert more of the country’s 39 billion dollar foreign reserve to Yuan.

Speaking at a Forum on Wednesday in Abuja, Xiaojie described the plan as “ a very encouraging development’’.

He said it demonstrated the “closeness’’ between both countries, which currently have an annual bilateral trade volume of 13 billion dollars.

“Nigeria is among few countries, or two or four countries, in the world that have parts of their foreign reserve in Renminbi (RMB) currency and we are happy about that.

“We have noticed that the Central Bank of Nigeria is increasing its share of Chinese RMB Yuan in its foreign currency.

“Talking about financial cooperation there are more opportunities, wider range of things we could do in finance because China has the biggest foreign reserve in the world.

“For such a big country (like Nigeria) you have to have all kinds of securities.’’

Xiaojie said China had noted the positive growth in Nigeria’s economy, including the fundamental growth in the micro economy.

“The government is handling the financial micro economy very cautiously with the international cooperation and I think you are doing the right thing.

“We hope that there will be closer cooperation in the area of financing and micro economy,’’ he said.

In January the CBN had hinted of plans to convert more of Nigerian reserves from dollars to Yuan.

At present 80 per cent of Nigeria’s foreign reserves are held in U.S. dollars.

The apex bank started converting its reserves into Yuan in 2011. (NAN)

www.vanguardngr.com/2014/10/

Ok

A great deal is at stake here

If nigeria try such it will surely go the way of gahna fallen currency.

We should neither face West or East.


What's wrong with GEJ's advisers on our Economy?

+think this makes economic sense, if half of our imports come from china then the step taken is one in the right direction. I see a lot of developing countries doing the same too. Smart move.

The sooner Nigerians realises that 90% of the world's product are made in China ... the better for us. you can live without China and that's a fact.

that is what I will call a case of thinking ahead,

Kodus to the Economic team. with falling oil prices which is a threat to dollar and China's growing Economy..i can only say kodus

Let it be what will benefit the common man on the street.

Na wa o, everything China. toothbrush china., toothpick China . even our money China. haba