bayulll011:


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

Yea but for now, these men are dying of hunger.. Cs of the dollar madness.

Its now left for the Government to have a plan B to balance everything..

Talking about mr president, put your self in these people's shoe and i bet u will do more than wail

Nice write up..

Masterstroke from Govt.

However, like the writer rightly pointed out, this should only be for the short term, while we are developing our medium to long term Sustainable framework.

I believe in this govt. We shall get there.

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.

So even though there is unfathomable suffering in the country you still want us to keep sucking Mr.USA's divk?

The slavery is strong with this one.

Buhari should advice people to import production machines from china, they have a tonne of that.

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??

Willful ignorance is when u want Naija to be export dependent but type with Chinco phones and laptops..
Did u think that those phones and laptops were made with 0MW which was generated by this admin last wk

2day is my birthday......show love

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/

One reasonable things this government has done so far. Now phones will be cheaper thank God abeg who can help me convert 500 dollar to yaun.

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.

if we look at the big picture,you we realize that Africa is just a puppet,we need to start producing our stuff

redcap:






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 we'll be back to square one.

Its still better than the dollar madness.

Remember, if you see dollar you buy, if you no see dollar nko yaun must be found.

So which ever way meeeeeeeen Alaba must import.

Hunger don pieces my cousins wey dey study out side based on say their father never go market

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.

Serves them right.

1. They wouldn't help us with BH

2. They began fracking and added to the oil glut

3. Their goddamm dollar is at the root of our inflation.

4. A cheeseburger made me ill last week.

celebgists:



chai This guy must be a criminal

No bro I am not. Am an Architect, my imaginations are boundless. Trust me.

Techno phones to become cheaper i guess.

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.

wrong.

you have forgotten that once the demand for the USD goes down, it would not sell for 320 again.

In fact, i predict that the naira will appreciate against the USD in the next 48 hours...

watch this space

All these Nairaland tribalistic people sef. Now Buhari is no more a Dullard... someone even said that "Nwoke Fulani nwere this kind of brain" meaning This Fulani man has this kind of brain.

I voted this government and even tho the recession is affecting me like crazy, I believe there is light at the end of the tunnel.

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

She won't go to hell because your country is in lots of international organisations and their levys are paid in US DOLLAR, China itself buy things frm US in Dollars and if ur government like it shld change her currency to yuan it will still buy things frm US and pay in dollars(comparative cost advantage), he shld invest in exportation.

Keneking:
I hope PDP governors would not convert their dollars at home to Yuan abi yawn. That would put pressure and exchange rate would climb to 50+Yuan/NGN1.

Those leaders have damages the economy with dollar business.

y mentioning only PDP here? do u want to tell me their is no dollars in the house Okorocha, Amechi, Oshiomole and other politicians in APC?

MilesLamar:


If your president is a dullard, then that makes you a Dundee

Did you see you in ma comment where I said he is my president? He is not my president until he proves me otherwise. The "Dundee" is for you guys who voted for him and is still following him foolishly

This analysis is wrong.

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.

no matter how you round trip it, dollar will still fall a little (at least 10%) in the parallel market though the Yuan will also increase. You can't stoke pile dollars for too long except you have enough cash for other purposes.

successismine:
2day is my birthday......show love

Happy birthday dear...God bless your new age

Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have certificate but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars

2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.

3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar

4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.

5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira

6. Nigeria imports almost all it needs from the West, Middle East and Asia.

7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.

8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”

9. FXR means foreign exchange reserves

10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...

11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..

12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.

13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.

14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.

18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.

19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming

20. Naming oil, refining and mining..

21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

Is this not what happend to Zimbabwe?... NEO-colonization in disguise

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.

We don't need to make US happy every now and then.

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.

na by force if them like make them no happy na only USA waka Come... #irep_madeinNigeria

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.

I think there may be impediment to converting Naira to yuan at the official rate.
Black market rate may become the norm.

Aliexpress loading......

northvietnam:


Yea but for now, these men are dying of hunger.. Cs of the dollar madness.

Its now left for the Government to have a plan B to balance everything..

Talking about mr president, put your self in these people's shoe and i bet u will do more than wail

There should be government policy to check mate all these importations,honestly we are better off with this deal than those parasite known as the american

Clone2020:
I don't trust the Chinese.

the Chinese should be the one saying they don't trust us not we

Why this so much fuss about the RMB? Even the Chinese in China don't like to use it; they prefer to use U.S.A. dollars.


Who caused the forex crises in the first place if not Buhari himself with his harsh economic policies?

Now he promised to fix it by flooding Nigerian banks with RMB and folks are here clapping for him.


Is China the only country we import from? What about those who wanna import from Dubai, Turkey, UK, USA, can they import with RMB too?

What of the students in other foreign countries? Are they also to pay their school fees with RMB?

When this new policy fails him now he will tell us how it was GEJ's policy in the 1st place.


Why is the Government trying to make this look like a big achievement?


Is this a distraction tactics to make us forget about major issues at hand like:
No power supply ;
Forex crises;
No fuel;
No jobs;
Outright denial of election promises and non-fulfilment of same;
No respect for rule of law etc?

GOD SAVE NIGERIA.

please have they start selling it in banks,. Yaun releases the yoke on businesses,my Igbo brothers in Lagos island,Alaba market, and so on. come and merry ooo

Lord please help our country to attain her optimum level in growth, like other western countries. Amen.

I believed so much in this country, and I also believed that we can do it. It's time to ditch the dollar for good.

As if Mr. President and his team were in my thoughts and our debate early January, we need this for UAE and if possible South Africa and most OPEC states since we are importing refined products from members. CAD though little volatile regains quickly too.Imagine if south African Republic investors who dnt have assets here and usually transfer earnings back home or contracted services to UAE can access these currencies directly rather than dollars first. If an importer of pet products from Saudi or Others can exchange directly then why buy dollars?

Nice moved............