NIGERIA'S ROMANCE WITH CHINA, THE SECOND LARGEST ECONOMIC NATION, IS BEARING FRUIT!

It may be too early to assess the rate of Nigeria's economic growth in the area of diversification from the sole crude oil foreign exchange earner to agriculture and solid minerals mining, but we can assure Nigerians that, a silent revolution by the new economic team is underway to replace oil monopoly and take the nation out of the woods! In November 2015, Nigeria was rated as the 22nd world's largest economy by International Monetary Fund, (IMF), yet classified as a poor and developing nation all because of the infrastructural decays of many decades and the mismanagement of the nation's finances through endemic grafts, but in spite of this gloomy picture there lies a bright light at the end of the tunnel with the strategic economic plans of this new administration!
Although a lot criticisms had trailed the several overseas trips of President Buhari since his assumption of office, we make bold to state that those trips were geared towards bridging economic deficit gaps through strategic feasible foreign loans and diversification through domestic resources to sustain the ongoing efforts to revamp the economy at a time when the global economic recession remained unabated in view of crude oil glut which resulted from the worst and lowest international prices ever experienced in 12 years! President Buhari just returned from China, which had invaded Africa's developing and under-developed countries on a rescue mission to set them free from self-inflicted poverty to economic viability through the template which catapulted them to becoming one of the current world powers and respected economic blocs - in fact, the second largest after the United States! Several bi-lateral economic agreements were signed between the two countries and efforts were made to quickly bridge the trade imbalance of 80 - 20 per cent in favour of China, due to Nigeria's penchant for "CHINCO" export products, within a very short time to reverse the trend for massive Nigerian exports to China!

Dividends Of The 5-day State Visit.
Beijing signed agreements to develop infrastructure in Nigeria as part of a drive to deepen its ties with Africa and has offered a loan worth Six billion US dollars to fund infrastructure projects.
President Xi Jingping assured Buhari that there was huge potential for economic co-operation with Nigeria in oil refining and mining.
In view of this developments, Nigeria would soon commence issuance of the cheaper Panda bonds (mainly Yuan denominated) as against Euro bonds and Nigeria-China lopsided trades, which accounts for over 70% of imports into Nigeria would now be concluded in Yuan, while Nigerian traders and businesses, which import mainly from China would conclude their transactions in the Chinese currency, the Renminbi (Yuan), instead of the dollar!
Nigeria's opportunity to trade in the Chinese national currency, the Renminbi (Yuan), instead of the US dollar in a swap deal is geared to shore up investment opportunities that would favour Nigerian businessmen, educational and health care opportunities in China and also, a move to break the dependence of Nigeria on the dollar for international financial and business transactions!
Previously, over 90% of international trades and financial transactions between Nigeria and other countries of the world was done in dollars which exerted much pressure on the naira but CBN would now diversify a huge chunk of Nigeria's foreign reserve from dollars to the Yuan to perfect the agreement and ensure its free flow among the banks as one of the foreign exchange currencies that could be sourced from the foreign exchange reserves of Nigeria! This agreement on Yuan transaction which would create a window for the resuscitation of the Naira slump against the US dollar since January 2016, was signed between the Industrial and Commercial Bank of China Limited and the Central Bank of Nigeria on 13th April, 2016, in Beijing, to include the currency into Nigeria's foreign exchange reserves, an indication that President was determined to transform Nigeria into an exporting and no longer a consuming nation and also a fulfillment of the promise to strengthen the Naira against the US dollar!
Yuan financial transactions is not new to Nigeria because in 2014, there was a move by the Central Bank to increase its Yuan foreign reserves to seven per cent, but in view of this present move by the Buhari Administration to break the US dollar jinx, the percentage might increase to over thirty digits for better international business leverage between Nigeria and its African peers!
Nigeria is now in league with other African countries like Ghana, South Africa and Zimbabwe and also Kazakhstan and Argentina which had integrated the Yuan into their financial markets which at this rate of spread, has become a most-likely replacement to the US dollar, not only in Africa, but globally in settling international trade deals. It is heart- warming to note that Nigeria would become the clearing house for Yuan denominated transactions for the whole of Africa following the agreement with the Chinese Government.


I am, yours sincerely, Dr. David Olufon. 08130669886, 08098194390. 08080243066 g-mail- dvdolufon@gmail.com.

David olofofo take ur Tymeooo

richidinho:
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