N720BN CURRENCY SWAP DEAL ATTRACTS NIGERIAN BANKS TO CHINA
source: http://www.eyesoflagos.com/2018/05/n720bn-currency-swap-deal-attracts.html

There are indications that the naira may begin to gain strength in the days to come as Nigerian banks conclude plans to open shops in China. This followed the pact signed by both the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBOC) on a RMB15 billion (about N720 billion) currency swap. With the swap, some banks with international licence but without presence in China have begun processes to open shop in the Asian giant. Eyes Of Lagos findings reveal that some tier one banks with presence in Europe and other African countries have applied to the CBN to obtain approval to open shop in China. An insider in one of the top tier banks confirmed to our correspondent that talks are already ongoing in the bank on opening shop in China, even as the bank would soon be seeking regulatory approval. But tier 2 banks are wary of spreading their tentacles so as not to incur more operational costs that would eat into their profits. A source in one of the tier 2 banks with international licence told Eyes Of Lagos that the bank management is being cautious of spreading too fast and would rather stick to its growth plan. According to the source, the management is working towards achieving a tier one status before expanding outside the country. Analysts believe that the swap will cut back the demand for dollar, as Nigerian businesses require more Chinese currency, though the value of the naira weakened slightly at the Investors and Exporters’ Window last week and remained stable at the parallel market. According to lead analyst at FXTM, Lukman Otunuga, there is a possibility that the naira will strengthen from the currency swap deal, as the demand for Dollar drops. He noted that the swap deal will not only improve the speed, but also the convenience of transactions between both nations. Otunuga said investor’s sentiment towards the Nigerian economy is being elevated, after the CBN “finally signed a bilateral currency swap agreement with China”, a pact that aims to provide sufficient liquidity to Nigerian and Chinese industrialists. Similarly, analysts at Afrinvest West Africa described the agreement between the two countries as a positive development, given the foreign currency liquidity squeeze Nigeria frequently experiences and the strong trade and investment ties between the two countries. According to figures provided by the National Bureau of Statistics (NBS), merchandise trade between China and Nigeria reached a record high of N2 trillion in 2017 representing 8.7 per cent of total merchandise trade in the country. This makes China Nigeria’s third largest trading partner after India and the United States accounting for 12.5 per cent and 10.8 per cent of merchandise trade respectively. However, the Balance of Trade is heavily tilted in favour of China as imports of N1.8 trillion from the Asian giant in 2017 was 8.1 times Nigeria’s export of N220.6 billion and accounts for 20.9 per cent of total imports in the last five years. Analysts at Afrinvest noted that the swap pact would reduce currency transaction cost for importers and ease forex liquidity pressures in periods of exchange rate volatility and scarcity. “The implementation of this currency swap will also enhance financial stability and external reserves management by reducing the volume of forex interventions in the local market needed to fulfill imports demand”, they noted. The analysts also said the agreement could serve as a risk management and unconventional monetary policy tool as probable losses resulting from transactions affected by volatility in the local currency could be hedged and minimized. “As an unconventional monetary policy tool, in managing third currencies pressures and liquidity, the importance of the bilateral currency swap agreement between Nigeria and China cannot be neglected”, they added. However at RMB15 billion, analysts say the Swap Line, which could barely cover 40 per cent of Nigeria’s Chinese import in a single year, will limit the impact on the economy. They listed as a key downside risk to the agreement, the ease of transaction with a highly competitive country like China, saying it could worsen Nigeria’s trade balance and weaken domestic manufacturing capacity. “We think this concern is justified, particularly in a period of heightened trade skepticism. Yet it also emphasises the need to deepen domestic policies on improving competitiveness”, the Afrinvest analysts stated in an emailed note.

Like Nigeria/China currency swaap deal, like tstv promises of pay tv without end.

We all pray it works. Even the best deals are subject to hackers who see Nigeria as their personal company. Wait oh...I saw the mic of NTA in that image. So they are still on air wasting precious air frequency abi?

the real beneficiary to this deal is China. instead of Nigerian government to look inward and see how it can shake up its manufacturing and production of locally made goods they are swapping currencies for Nigeria to become the largest dump sites of adulterated goods. china is not a credible market for Nigeria. Chinese make fake goods and fakes drugs for Nigeria. why cant we aim higher than the toilet? is it wrong to swap currency with Japan? How about Germany or Australia? we have the oil for crying out loud. Why can't we do business with big giants like the US? Buhari recently went to the US but for what?

China is making billions from Nigeria and they need us. we are begging china for what? we are part of the reasons why the Chinese can tussle with the US. the US imposed a recent tax increase on Chinese goods. they know that they have other markets to sell fake stuff and make higher profit that is why they are feeling high.

warri steel, ajaokuta steel why cant we harness what we have? look at all our ports are closing. warri port is a bay of fleas, port harcourt is being salvaged by the oil vessels leaving the bay. why cant we open up these areas. by now easterner and southerners should not risk their lives on the roads with loads. our waterway should be functioning. why can't the igbos drop their goods on a boat and ship it to the east. why do they have to encounter thieves and robbers and also criminal law enforcement officers on the road?
if these goods came into the country by water, why cant they be moved into boats and shipped down? why do easterners have to travel down to lagos to board an international flight when the traffic in our airports is from the east? why not make life easy for people?

kano airport is an eyesore. is not an airport is an air strip. dirty and dilapidated. and yet we have big names from that state. why is the railway not functioning? why should the hausa man carry loads in gwongoro from lagos to kaduna? why should southerners and westerners carry yam and agricultural products in gwongoro from the north? why cant we have trains?

the government knows what to do but they just being wicked.

look at the things going on in this country and many people are silent. anyone silent over evil is an accomplice of evil. look at how all our Nollywood stars came out to voice their support for bbnaija. so they know about bbnaija and people die in benue and none of them came out.

the only person deserving or respect in Nollywood are Stella Damascus, God bless that lady. Stella, Gordons and Ali baba. The rest of them are selfish cowards. devools who care less about the evil in our country. is it wrong for AGN president to summon celebrities to use their platforms to campaign for a better Nigeria? after we don fight and dyie finish dem go come out and day smile fake smiles with their dirty bodies.

see yesterday for headies all the girls dress up like Hollywood celebrities but they cannot maintain their bodies to look like Hollywood celebrities. carry fat full everywhere. she as Tiwa dress like cheap tramp.

there is no electricity in our country. this is the deal that Nigeria should swap with china. not currency. let the Chinese come and build our electricity like the americans built the panama canal. let them manage it for 100 years for all I care but let there be light in Nigeria. ah ah God create the full world and said let there be light. why is there no light in Nigeria?

and we are celebrating all these people. speak the truth. these people do not care about us. show no love to a heartless man. people are dying people are suffering and no one cares. we keep acting selfishly until we become victims or our family members begin to gt victimized. they are killing us and no one is coming out.

what sort of deal is this? all the fake Gucci, fake fones and fake products all come from china. china is not credible at all. we have the money why not buy from the US or Germany? the president's cars did not come from china. if they want to swap with chinea let us start from the presidency. let him use Chinese fones, drive Chinese cars and let the Chinese build his house. they are populating our country with trash. we do not need china. china needs us. we are a target for china.

Dora Akunyili went to china to plead with the government to stop selling fake medicine to Nigeria. she went that far. china is too populated they do not care about humans. if you have ever been to china you will see that what they sell to you is not what they use. they cannot never use what they give you. is that a country to partner with? let us develop ourselves. Nigerians are all running out. nothing works at all. a bunch of mediocrity remains to destroy the country. it hurts really bad to see people suffer for nothing. people die from buying fake drugs.

Riversides2003:
They should stop decieving us jare, I remember the last time Buhari went to China, we got a similar news but which happened to be false

Yes, I remember too, he lacks the will to pursue anything nationally progressive. I wish we have a President that is passionate about Nigerians, not only about Fulanis. I wish we have a President that treats every religion equally. I wish we have a President that values human life, that decisively deal with senseless myopic religious and tribal killers. Just yesterday, I saw news here of many killed in Kaduna. Christians should maximize every opportunity available.
God Bless the bro below. Christians should register at the site and maximize the opportunity.

EternalBeing:
Christians have woken up to reality that in order to prevent our Children and unborn generations from becoming permanently enslaved by Moslems and Satanists, we need Political Power! And we need to unite because it is our senseless lack of Unity and Love that has made us to be slaughtered this long. The unprecedented Christian empowerment platform is here! Register now, it's still FREE http://cppower.org Deep political secrets are being revealed there. Also, local and international Job Vacancies and other Opportunities shall be constantly announced so that Christians can get them before our enemies do. If you just want to get by in Life instead of impacting the World for good, then you are part of the problem. JESUS commands us in Luke 19:13 and Genesis 1:28b to Dominate and Occupy till HE comes.

They should stop decieving us jare, I remember the last time Buhari went to China, we got a similar news but which happened to be false

Good for the economy.

hisgrace090:
Like Nigeria/China currency swaap like tstv promises.

1st of may is gone...
still nothing
useless ppl just give me false hope

OK na

You are dealing with both USA and China?

I guess USA will be very happy about this.


Hope this isn't another propaganda like the rubbish eye service they signed 3 years ago which was the last thing we heard?

Ok

Why does the deal not attract Chinese banks to Nigeria?

since 2015

Later people will say buhari doesn't have 'thinkers' in his government.

Whilst it must be said that I supported him in 2015 against GEj
That Buhari is a bigot and ethnocentric, but he's still a performer and Far better than OBJ, Yar Adua and GEJ

See what the ignorant Yar adua/Gej government did in 2007 is very wrong. OBJ started lots of laudable projects which he knew he couldnt complete in 8 years. He then pushed for 3rd Term. It failed and thought of finding trusted loyalists in Yar Adua and GEJ. The two failed to realize that there's joy in continuity. They cancelled many projects initiated by OBJ and started their own.

See how BUHARI beat PDP.

All projects GEj started, Buhari is completing them and taking the glory

TSA
Kaduna Rail
2nd Niger Bridge
Increase in Power Generation
EFCC HQ
Now the China Deal.

This man is the master

Next year, naira will still be 360 to a dollar.
Then you will be wondering what happened to the so called swap deal.

Useless government.

Riversides2003:
They should stop decieving us jare, I remember the last time Buhari went to China, we got a similar news but which happened to be false

bros this is early Monday morning try use your brain .
Deals that involves bilateral trade BTW two countries is not business trade between chibuzor and sikiru at
Idumota market.
It takes years and lots of bureaucractic process to ensure the paperworks re signed by both parties.

Britain opt of European Union almost two years now but it will take another two years for them to complete the necessary things to do before they finally pull out

[s]

GavelSlam:


What are you exporting personally that is making you expect the Naira to appreciate?

Useless citizen.

[/s]I bring in the dollars. Bmc, what about you?
I'm sure you have no life outside getting paid 10k month by the apc and still go back home and eat mama thank you food.

So you wouldn't know what someone us who actually deal with the currency go through in the hand of useless government you want to kill yourself for.

another way to siphon money out of the system , all in the name of currency swap. they will make sure this deal goes ahead , 720 billion has to be moved one way or the other

GavelSlam:

You are not even sure how to wail.

Very well, you don't understand my post.... You can swerve.

gurunlocker:


Very well, you don't understand my post.... You can swerve.

Gerrout.

You are going left and right looking for something to wail about.

Not even sure what it is. All you know is that you must wail.

Wetin de wan de sell for the shop

OkoNDOoBo:
bros this is early Monday morning try use your brain .
Deals that involves bilateral trade BTW two countries is not business trade between chibuzor and sikiru at
Idumota market.
It takes years and lots of bureaucractic process to ensure the paperworks re signed by both parties.

Britain opt of European Union almost two years now but it will take another two years for them to complete the necessary things to do before they finally pull out

Guy take chill pill I understand your frustration.

Good move, it will further ease Naira pressure and reduce dollar domination, while at the same time easing business transactions and encouraging more investors from the world's second-largest economy, China and the rest of Asia-Pacific.

In days to come, I will expect the Naira to strengthen and business optimism to surge as investors look to capitalize on the opportunity, especially now that global crude oil prices are trading above the $70 a barrel price level.

Also, this will strengthen diversification plan and deepen economic activities across sectors like manufacturing, Agric, services, etc that contribute the most to the economy, yet receive the lowest attention due to commercial banks attitude towards these sectors. Access to forex without the usual dollar constrain will aid business growth and increase new job creation.

However, a strong quality control team is needed to vet imports for safety reasons and communicate 'quality standard' demand from importers as at when due to avert a potential calamity.

OkoNDOoBo:
bros this is early Monday morning try use your brain .
Deals that involves bilateral trade BTW two countries is not business trade between chibuzor and sikiru at
Idumota market.
It takes years and lots of bureaucractic process to ensure the paperworks re signed by both parties.

Britain opt of European Union almost two years now but it will take another two years for them to complete the necessary things to do before they finally pull out

Let them keep on wailing like their life depend on it..

In as much as this deal will reduce the demand pressure for the dollars and slightly appreciate the Naira against the dollar, on the other hand it will create room for dumping of Chinese products in Nigeria.
It would be good If Imports are regulated or constrained to mostly raw materials and machineries.

GavelSlam:


Liar.

You don't bring in Jack.

If you did you would appreciate a higher exchange rate for your dollar.

All these poverty stricken wailers sef.

Nairaland virtual billionaires.

lmao. Thanks you. I'm poverty stricken.

Now tell me, is what I said a lie?


Why are you so pained by what I said? Are you going to get fired if you don't die defending this useless government?

I can offer you a better job than this you know? Just send me a mail.



Lmao, how can you appreciate the same higher exchange that brought about inflation in local market.
Dunce.
If inflation occurs in local market, not imported goods, due to higher exchange and people's income didn't change.
It affects everyone nd changes nothing.

I'm sure you wouldn't know that because you are still been fed.

GavelSlam:


Why not get a job first?

send me a mail when you are ready.

jimrog:


Let them keep on wailing like their life depend on it..

Hmmm.... We'll keep praying for Nigeria.
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