Choi. .. this will so favor my igbo brothers in China...

Nna let me go to China and import use-and-trowey cars. I learnt China have started manufacturing use-and-trowey cars mehn!..

mrsage:
What's the exchange rate. Naira to Yuan? And is this the time to buy the yuan for speculation?

See them...dey don come again oh with their speculation!

Nice concept

BiafraBushBoy:
Bubu just satisfied our greedy demand for foreign products!!

Oya let's switch to Yuan till it becomes 1 Yuan = 300 naira, we will find another country to swap with again!!!

Nigerians don't wana suffer but they want to be exporting!!

How is that possible??

it seems you are used to to suffering

maxxy:
The news that Nigeria has signed a currency deal with China allowing the free flow of the Chinese Yuan amongst Nigerian banks (https://www.thecable.ng/nigeria-china-sign-deal-on-free-flow-of-Yuan) is arguably one of the best (or worst?) policies so far of the Buhari Administration.

Banks would now be able to settle payments directly from Naira to Yuan, rather than from Naira to black market Dollar and then to Yuan. In fact, an extension of this is that debit and credit cards can now be issued and denominated in Yuan. A sizeable portion of the local Dollar demand is thus eliminated, reducing the pressure on our Dollar reserves.

To boost our Yuan liquidity, the Chinese loans being negotiated by the Federal Govt may be availed partly or wholly in Yuan. This will greatly boost Nigeria’s Central Bank and commercial banks’ Yuan liquidity. In fact, the Nigerian and Chinese Govts are reported to have entered into a framework arrangement for currency swaps as a means of providing the much needed liquidity.

At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.

PROS

This policy will lead to a reduced demand for Dollars and easing off of pressure on our Dollar reserves, as a large portion of Nigeria’s import needs are served by China (China is Nigeria’s largest trading partner – http://www.premiumtimesng.com/business/business-interviews/188666-china-tops-u-s-as-nigerias-biggest-trade-partner.html). Deals such as Dangote’s purchase of 3400 trucks (http://venturesafrica.com/dangote-group-signs-deal-for-3400-trucks-supply/) will henceforth be settled in Yuan rather than scarce Dollar reserves, which would then be sufficient to service other legitimate investor demands such as portfolio investments, capital repatriation, etc.

This policy also implies cheaper imports from China as importers from China would import at the equivalent of the current official rate of N199/$1 as against the current parallel market rate of N320/$1.

CONS

This policy may keep Nigeria as an importation-dependent economy. Due to its deliberate policies towards boosting its economics of scale, China produces most goods at a comparative advantage. While we have decried the importation of toothpicks and the likes from China, we must bear in mind that we import toothpicks not because we do not have bamboo and other raw materials in Nigeria, but because China is able to bring these goods to the Nigerian market at a much cheaper price than the one produced right here in Nigeria. The reasons are not far-fetched; the availability of infrastructure, cheap labour and use of manufacturing clusters. This policy would therefore sound a death-knell to the resurgent local production of importation substitutes.

Again, this policy would only bear the projected fruits if and only if the Nigerian factor doesn’t come into play. As demand for Yuan surges, a parallel market for Yuan may soon be created, bringing us back to this same point many years after.

WHITHER NIGERIA?

This policy should not be viewed as a solution to Nigeria’s Dollar dependency as we may otherwise inadvertently create a Yuan dependency. At the very best, this policy should be a stop-gap, a short-term measure devised to keep things in place while we sort out our infrastructural and policy challenges. The future prosperity of Nigeria lies in production for local consumption and export, and not the consumption of foreign imports.

Maxwell Asowata, Legal Practitioner and Business Consultant, writes from Lagos, Nigeria.

Source - http://ecstasyhouseng.com/index.php/2016/04/13/free-flow-of-yuan-in-nigerian-banks-what-you-need-to-know/

Thanks so much!

But too many don't even have the naira to begin with!!

slow and steady wins the race ,let give this man a chance so we all can benefit from what he has brought to the table . he has fore once told us that he cant produce magic over night . I still believe in the former general Nigeria will be great. remember ,we a have the power to elect who we want to rule us . if after the four yeas he is given nothing is achievable then we can now fire him like we did Jonathan.

It sounds cool. I just hope our polithiefcians wont device a way to make yuan high for their selfish interest.

simple

I must confess and for the first time am about to Call him Mr president not Dullardi.

Am proudly 5% and this policy will benefit my Alaba and onitshaa brothers wellaaaaa.

Spoke with some of them on phone and told them the news, i had to explain in a lay mans way for them to comprehend, they were happy and one even said to me so nwoke fulani nwere this kind brain...

We need good governance. I will not stop wailing if Bubu, sorry if mr president jonz again in policy making.

Long Live the Lands Across the Niger River..

Proudly 5%

udumosam23:
At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.


wait o, am I missing something here, like guys have been converting their nairas to yuan, then buy from US or UK at lesser rate with Chinese yuan o.

And I dey here dey wait make dollar come down b4 I reassume importation. chai, I dull, I dull.

wey my chrome book, ( starts browsing on how to convert my naira to yuan and then to dollar ). Thunder fire devil.

Your head dey there

BiafraBushBoy:
Bubu just satisfied our greedy demand for foreign products!!

Oya let's switch to Yuan till it becomes 1 Yuan = 300 naira, we will find another country to swap with again!!!

Nigerians don't wana suffer but they want to be exporting!!

How is that possible??

You mean importing!

uduak2016:
Somebody is trying to piss America off by abandoning the Dollar for other currency...no nation has tried it and was successful at it especially in Africa.

America should go to hell !!!!!!!

Nice move. Hopefully prices of materials would drop.

hok4u:
China is using Nigeria as part of their plan to dethrone USA as world power, the US won't be happy with this development.

.
Bleep US !!!!...USA should go to hell

This policy should not be viewed as a solution to Nigeria’s Dollar dependency as we may otherwise inadvertently create a Yuan
dependency. At the very best, this policy should
be a stop-gap, a short-term measure devised to
keep things in place while we sort out our
infrastructural and policy challenges. The future
prosperity of Nigeria lies in production for local
consumption and export, and not the
consumption of foreign imports.

cc: Buhari. Adeosun.

northvietnam:
I must confess and for the first time am about to Call him Mr president not Dullardi.

Am proudly 5% and this policy will benefit my Alaba and onitshaa brothers wellaaaaa.

Spoke with some of them on phone and told them the news, i had to explain in a lay mans way for them to comprehend

Most of your brothers are so funny,they don't wanna give the president a chance,this will immensely benefit them on the long run,the problem is,Nigeria will be dumping ground for all china product,which will be a huge damage to our economy

northvietnam:
I must confess and for the first time am about to Call him Mr president not Dullardi.

Am proudly 5% and this policy will benefit my Alaba and onitshaa brothers wellaaaaa.

Spoke with some of them on phone and told them the news, i had to explain in a lay mans way for them to comprehend

And you think we importers dont know the advantages,the truth is that banks will still demand for LCs before you can access the yuan and the process and delays can be a stumbling block.so expect the rmb to start trading at the parallel market soon and voila,we're back to square one.

Very simple!

Convert your naira to yaun at normal rates, convert your yaun to dollars at normal rates again. Then recycle the dollars back into naira at N320.

Some people's calls have been picked by by this miscalculation.

Hmmmmm Chinese products no dey last oooooo

Ali express marketing here we go!!!!!

Clone2020:
I don't trust the Chinese.

Neither do I! But what options are there?

We only need to be smart about it. What that means is to develop our economy and have zero tolerance to corruption (like China).

udumosam23:
At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.


wait o, am I missing something here, like guys have been converting their nairas to yuan, then buy from US or UK at lesser rate with Chinese yuan o.

And I dey here dey wait make dollar come down b4 I reassume importation. chai, I dull, I dull.

wey my chrome book, ( starts browsing on how to convert my naira to yuan and then to dollar ). Thunder fire devil.

That's 207naira to 1dollar

This is good, but let it be short term measure, as keeping it for too long is like replacing one devil with another.

hurricaneChris:
Very simple!

Convert your naira to yaun at normal rates, convert your yaun to dollars at normal rates again. Then recycle the dollars back into naira at N320.

Some people's calls have been picked by by this miscalculation.

chai This guy must be a criminal

Jidibia:

That's 207naira to 1dollar

yeso and banks are charging us 320+

good one from thr dullard

uduak2016:
Somebody is trying to piss America off by abandoning the Dollar for other currency...no nation has tried it and was successful at it especially in Africa.

My thoughts exactly. Ask Gaddafi...oh...they killed him.

hopeforcharles:

I like ur analysis especially it to be used as a stop gap method, while we develop our own framework, this is a welcome development, but we should be careful lest it grows so high like the dollar.

It will sure hike the dollar as the vast majority of exporters in china sell in dollars
Reasons
Trade in Dollars yoy recieve tax breaks (china policy to encorage exports )
Sell in local currency yuan no tax breaks you pay heavy tax to the chinease govt.
The value of the yuan is dollar dependent.
The only good thing here is that it's still optional .

Ok Gworo eater did this one well

Eyaf try

And this is what the USA, IMF and world bank were afraid of. That we may find alternatives, and that our model of solving our economic crises like Russia and or Iran would spread across the world, bringing slow death to western domination.

This's one policy direction this government have made that I know of.