U.S Market Panics Over Potential Dollar Crash As Buhari Signs Currency Deal With China

In a bid to bridge the widening gap between the Naira and the Dollar in the Exchange rate market, President Muhammadu Buhari, on Tuesday, April, 12, shocked foreign investors mainly from the United States who have been accused of stockpiling their money in dollars.

The President had consistently insisted that he would not devalue the naira against the dollar despite pressure from the International Monetary Fund, IMF and the United States.

With the West insisting that the nation’s currency must be devalued, which has always been part of their conditions for assistance, the East (China) has offered to rejuvenate the nation’s economy by investing in capital projects across the country.

During talks, China and Nigeria agreed to strengthen military and civil service exchanges as part of a larger capacity building engagement.

In line with this, China offered to raise it’s scholarship awards to Nigerian students from about 100 to 700 annually, while 1,000 other Nigerians would be given vocational and technical training by China annually.

According to the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the Chinese President, Xi Jinping also offered $15 million agricultural assistance to Nigeria for the establishment of 50 demonstration farms across the country.

The offer was in response to Buhari’s vow to make Nigeria self-sufficient in food production.

During Buhari’s visit to Beijing, the Industrial and Commercial Bank of China Limited, the world’s biggest lender, and the Central Bank of Nigeria signed a Currency swap deal on yuan transactions.

The implication according to the Director-General, African Affairs Department, China’s Foreign Ministry, Lin Songtian, is that “Renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria,”

The Minister of Finance, Mrs. Kemi Adeosun, had said last week that Nigeria was looking at panda bonds or yuan-denominated bonds sold by overseas entities on the mainland, which she noted would be cheaper than the dollar and the Eurobonds.

An economic expert and Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, noted that the currency swap agreement will allow Nigerian banks to issue Letters of Credit in renminbi (yuan) in place of the dollar or euro.

“It will facilitate trade deals between Nigeria and China. The ongoing foreign exchange scarcity has been affecting the amount of Nigeria’s import from China.

“The new deal may ease pressure on the dollar, since demand for yuan/renminbi will start rising,” Chukwu said.

So far, most financial analysts have applauded Buhari for the trade agreement with China; on the other hand, China has also expressed interest in setting up major projects in Nigeria such as refineries, power plants, mining companies, textile manufacturing, and food processing industries as soon as the enabling environment is provided by the Federal Government.

Economic pundits have likened this agreement to his 1984 military regime policy when he directed the Apex Bank to cause a change in the colours of the Nigerian currency.

The exercise was designed to render the money alleged to have been stolen by Nigerian political leaders useless in their hands.
In a bid not to devalue, Buhari according to experts is seeking for a way to weaken the dollar dominated currency by approving Yaun to be one of the nation’s major foreign exchange currencies


http://www.newspunch.org/2016/04/us-market-panics-over-potential-dollar.html?m=1

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Ok

Buhari the "dullard "has done it again.

If the "dullard" can do what the ineffectual buffon phd holder couldn't do, then the clueless buffon wasted the money spent on his education.

NB. Wailers, I didn't mention anybody's name. The only person's name I mentioned here is BUHARI.

So mind the way you'll quote me or else, I will use the report button on you.

Sensational Journalism.

The writer of this piece should be sacked. The article never in anyway talked about the headings. Rather it kept repeating what we already know, that an investment and swap agreement was signed.


Punch has a knack for rubbish journalism.

Even the devil is scared of Buhari.....

I repeat, It gets to a point when you resists temptation that even the devil becomes afraid of tempting you!!

IMF, America, Etc, you will get tired of us soon.

How has your monetary policy helped Greece

We are waiting to make money from the policy.

Smh...

President Buhari's meeting with Chinese
officials has brought so many benefits to
Nigeria, and some of the agreements signed
include:


1. 长，水利部苏莱曼阿达姆部长和国防部长丹阿里，
长，水利部苏莱曼阿达姆部长和国防部长丹阿里，
长，水利部苏莱曼阿达姆部长和国防部长丹阿里


2.，长，水利部苏莱曼阿达姆部长和国防部长丹阿
里，
他来到中国人民共和国长


3.，水利部苏莱曼阿达姆部长和国防部长丹阿里，
他来到中国人民共和国进行国事访问行国事访问长，
水长长，水利部苏莱曼阿达姆部长和国防部长丹阿
里，
他来到中国人民共和国进行国事访问水利部苏莱曼阿
达姆部长和国防部长丹阿里，
他来到中国


4.人民共和国进行国事访问部苏莱曼阿达姆部长和国
防部长丹阿里，
他来到中国人民共和国进行国事访问长
And additionally，水利部苏莱曼阿达姆部长和国防
部长丹阿里，
他Lagos来到中国人民Calabar共和国进行国事访问
他

Its a very positive development, especially that number 4.







God bless our President

Is it so difficult to get a more credible source for your post? What's with all these mushroom sites?
A news portal with 5 articles?!
Haba, alhaji!

Na panic go kill them. Them jst start

Just give this man 4 years. I'm sure he has a good heart for our Nation. Let the prophets of doom guessing failure for our president should join the development train