Hi all.
I modified the title to get more traction on this thread. But funny enough, I think the new title is more relevant!
Dollar problems everywhere. How do the ideas below affect our reserves:

What happens if all international import transactions are paid for in naira? Will that help? Or the local currency of the export origin? After all if I go to China or India, I pay for goods in the local currency. How will this affect our foreign reserves?
Especially online payments for imports and buying or selling within africa?
Can online agencies like mastercard and paypal be talked into accepting naira with stringent security maybe escrow accounts and CBN backing?
Also, how do the uk, russia and china store currency at their central banks- in dollars?
Please educate us so we know. Someone might have an 'out of the box' idea to help this situation.
Thanks guys!

Unlike dollars, naira isn't an international currency. Take another look at your first three questions. Local currency of an export country ( to Nigeria) can not be naira. Naira will be of no use to the exporter if it is not internationally accepted as a medium of exchange and if there are no other exchanges between the two countries for which Naira will be useful.

I get you.
But bilateral trade agreements are meant to be beneficial to both countries. And if you go to china to pay for your imports you'll be withdrawing local currency. Does your bank then cover your yuan withdrawals with dollars? Why not pay the chinese in yuan, the indians in rupees, etc and avoid dollar problems? How does such trading affect the reserve?
I suspect that there may by agreements that dissuade this, but as a theory does it ease the pressure on the naira? Also the rest of the post is about africa, online trading and a medium for beneficial forex access.

Title changed from "Money Experts- What Happens To Reserves If...?" Enjoy!

Experts come n discuss ! I am waiting 4 answers

@Op I like your line of thought

First of all, the Nigerian Naira(NGN) is not an internationally accepted medium of exchange! As such, Naira cannot be used as you require. An American Merchant, selling to a Nigerian would want his money in U.S Dollars because the Naira would be useless to him!

What happens if all international import transactions are paid for in naira? Will that help?

Answer: Import, means you are buying from a foreign Land! How would you pay the foreigner in your local currency? What would he/she do with it?

After all if I go to China or India, I pay for goods in the local currency

Answer: You went to china, do you expect to pay a Chinese in China Naira? Or Dollar? No! Nigeria doesn't really export goods so much as it imports. Most of the goods in Nigeria are imported and not made here.

Can online agencies like mastercard and paypal be talked into accepting naira with stringent security maybe escrow accounts and CBN backing?

No, it would cost the company a lot of money and it might end up in a loss since the Naira isn;t globally accepted.

The sum of it all is, Nigerian Naira is not internationally accepted as a medium of exchange as such, it cannot fit into where you want it to

coolsix:
First of all, the Nigerian Naira(NGN) is not an internationally accepted medium of exchange! As such, Naira cannot be used as you require. An American Merchant, selling to a Nigerian would want his money in U.S Dollars because the Naira would be useless to him!



Answer: Import, means you are buying from a foreign Land! How would you pay the foreigner in your local currency? What would he/she do with it?


Answer: You went to china, do you expect to pay a Chinese in China Naira? Or Dollar? No! Nigeria doesn't really export goods so much as it imports. Most of the goods in Nigeria are imported and not made here.


No, it would cost the company a lot of money and it might end up in a loss since the Naira isn;t globally accepted.

The sum of it all is, Nigerian Naira is not internationally accepted as a medium of exchange as such, it cannot fit into where you want it to

Nice! Our major limitation is due to the fact that we are not mainly into exportation as a Country. We depend mainly on import.