I don't have much knowledge about the Nigerian monatary policy neither have I worked in any financial institution but from the layman's perspective ì don't see how hard it is to crash the dollar against the naira in one week.

Now read this...

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 2016 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.

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,”

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.

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

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
.....................................................................................

Please can any expert in the house tell us what happened to this agreement?

In my opinion this is a simple kindargerten solution to the ever increasing gap between the naira and the dollar...I believe that if the federal government implements this agreement today,the naira will drastically appreciate against the dollar in just one week as demand for the dollar will drastically reduce as most of our imports are from China and Japan which means there will be reduced transaction cost of changing naira to the dollar and back to yuan as many importers can buy the Yuan directly.

Over to you all to discuss because I'm totally at sea over what is going on.

Lol

The celebrated Yuan currency deal was a scam, it never happened. APC and SCAM are 5&6

Omudia11:
Lol

This is a serious matter..did Obama influenced the decision? Did some cabal changed Buhari's mind?

What really happened?

That Yuan deal is what is called beautiful nonsense..so just by changing the currency you use to trade internationally you expect the value of your own currently to go up ? Absolutely beautiful nonsense

Seun, lalasticlala and mynd44 please let's get the views of the people.

We need to discuss this matter and not just about protesting.

SalamRushdie:
That Yuan deal is what is called beautiful nonsense..so just by changing the currency you use to trade internationally you expect the value of your own currently to go up ? Absolutely beautiful nonsense

I thought trade is about demand and supply..

If we don't have to go through the dollar to do our import and export I guess the demand will reduce thereby forcing the exchange rate down...is this not dimple economics?

The value of Naira would have gone up a bit, but not the way you are exageratting it. Atleast it would not be the nightmare it is today.

The thing is, Buhari thought China's president was on his side, little did he know that china and the west are buddie (secret buddies) they only
act tough outside just to keep up appearances meanwhile behind the scene they have a long standing "trade romance". Anyways, knowing fully well that this deal would stabilize our currency a bit (which would anger the west) China quickly stabbed PMB in the back and withdrew from the deal, buhari being too embarrased simply could not speak of this shameful display so they silently buried the whole thing under the rug hoping for it to be forgotten.

Atleast this is what my fantasy brain tells me.

Toks2008:


I thought trade is about demand and supply..

If we don't have to go through the dollar to do our import and export I guess the demand will reduce thereby forcing the exchange rate down...is this not dimple economics?

The key word there is values , trade is just an exchange of values so the fact that we change terms we use for our values doesn't change the value in the value

SalamRushdie:


The key word there is values , trade is just an exchange of values so the fact that we change terms we use for our values doesn't change the value in the value

And that is exactly the point.


The disparity we see today in the exchange rate is totally cosmetic because of so many negative factors like roundtripping,hurding, and many more so we can not say for sure that the present value of the naira is what it is again st the dollar but once the pressure is off from the dollar,the real value will surface.

Dudeweedlmao:
The value of Naira would have gone up a bit, but not the way you are exageratting it. Atleast it would not be the nightmare it is today.

The thing is, Buhari though China's president was on his side, little did he know that china and the west are buddie (secret buddies) they only
act tough outside just to keep up appearances meanwhile behind the scene they have a long standing "trade romance". Anyways, knowing fully well that this deal would stabilize our currency a bit (which would anger the west) China quickly tabbed PMB in the back and withdrew from the deal, buhari being too embarrased simply could not speak of this shameful display so the silently buried the whole thing under the rug hoping for it to be forgotten.

Atleast this is what my fantasy brain tells me.

I was actually thinking you got that somewhere until I read your closing remarks

Stay in romance section

Toks2008:


I was actually thinking you got that somewhere until I read your closing remarks

There is truth in every rumor, however nobody knows what truly happened,

ie, if the deal was even real in the first place. Nobody from the presidency wants to talk about it.
it's not like they all suddenly developed amnesia.

babyfaceafrica:
Stay in romance section

I weep for your likes....this is why some people will always lag behind...so in your warped mind you believe I'm only intelligent enough to write just romance stuffs...think again.

I am an Enterpreneur,a Politician,and an e-commerce consultant with major focus on currency trading and yes I'm good at what I do.

Sorry if my IQ is too high for you to decipher...can't help you on that...

Anyways I would advice you get intelligent enough to discuss the subject matter or just read comments from people.of sound intellect...Thanks

Toks2008:


I weep for your likes....this is why some people will always lag behind...so in your warped mind you believe I'm only 8ntelligent enough to write just romance stuffs...think again.

I am a Politician,An e-commerce consultant with focus on currency trading and yes I'm good at what I do.

Sorry if my IQ is too high for you to decipher...can't help you on that...

Anyways I would advice you get intelligent enough to discuss the subject matter or just read comments from people.of sound intellect...Thanks

k relationship expert

Dudeweedlmao:


There is truth in every rumor, however nobody knows what truly happened,

ie, if the deal was even real in the first place. Nobody from the presidency wants to talk about it.
it's not like they all suddenly developed amnesia.

The mystery of the China deal.

Toks2008:


The mystery of the China deal.

.....Would make a fantastic article.

Toks2008:


I thought trade is about demand and supply..

If we don't have to go through the dollar to do our import and export I guess the demand will reduce thereby forcing the exchange rate down...is this not dimple economics?

You should know the guy is empty like a failed coconut

The cbn governor has addressed this issue... There are many process to follow before it comes to pass

OP is tryin to create money out of thin air. If we switch to yuan in order to reduce dollar demand, how do we earn enough yuan to fuel our thirst for imported goods? Truth is we are lazy and have little to export asides oil.

Toks2008:


I thought trade is about demand and supply..

If we don't have to go through the dollar to do our import and export I guess the demand will reduce thereby forcing the exchange rate down...is this not dimple economics?

If we bypass $ the yaun get more demand than supply and will enventually increase in price. This will force people to import products from $ accepting countries.

Toks2008:


This is a serious matter..did Obama influenced the decision? Did some cabal changed Buhari's mind?

What really happened?

nwayoooooo

Standing5:
If we bypass $ the yaun get more demand than supply and will enventually increase in price. This will force people to import products from $ accepting countries.

On the contrary I think it will create a balance in demand.

mrvitalis:
The cbn governor has addressed this issue... There are many process to follow before it comes to pass

What long process?

Is the long process more destructive than the crazy disparity we see today between the two currencies?

There is something they are not telling us.

Standing5:
OP is tryin to create money out of thin air. If we switch to yuan in order to reduce dollar demand, how do we earn enough yuan to fuel our thirst for imported goods? Truth is we are lazy and have little to export asides oil.

That is a long term move but what I'm talking about is an immediate act that will crash the dollar against the naira.

We'll have a deficit with the Yuan as with the dollar because we don't export so much to China as to earn Yuan. Demand will exceed supply and you'd have dollar 2.0.

No magic can crash the dollar against the naira even in 100 years.

You don't produce
your citizens always depend on imported goods and even services, which are paid in the $$$
You don't export
Your citizens don't even fancy your currency
Your reserve is miserable
You have nothing significant in Sovereign Wealth Fund as a back up.
Yet, you expect a miracle because of an overrated Yuan? No Way!
Yuan deal is strictly for those doing importation from China, nevertheless, it can't significantly affect the demand of the dollar because our various international/inter border trade extend beyond China.
There is no wuruwuru to this!

TonyeBarcanista:
No magic can crash the dollar against the naira even in 100 years.

You don't produce
your citizens always depend on imported goods and even services, which are paid in the $$$
You don't export
Your citizens don't even fancy your currency
Your reserve is miserable
You have nothing significant in Sovereign Wealth Fund as a back up.
Yet, you expect a miracle because of an overrated Yuan? No Way!
Yuan deal is strictly for those doing importation from China, nevertheless, it can't significantly affect the demand of the dollar because our various international/inter border trade extend beyond China.
There is no wuruwuru to this!

I am really baffled at your postulation. .

It's simple logic of demand and supply.
Are you saying if importers can get the yuan directly it will not reduce demand on the dollar?

If All the igbo traders in the east and Lagos importing from Japan or China have access to get the yuan directly I'm so positive that there will be a drastic drop in dollar demands which will inadventedly bring about a marginal appreciation of the naira...this is common logic of demand and supply.