Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,778,270 members, 6,620,441 topics. Date: Tuesday, 07 December 2021 at 01:40 PM

Currency Deal With China: Things To Know - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Currency Deal With China: Things To Know (40858 Views)

Innoson Motors Signs Deal With China To Pump $1bn Into Nigeria / Ibom Deep Sea Port: Udom Emmanuel To Sign Deal With China (Pics) / Buhari Didn’t Sign Any Loan Deal With China – Presidency (2) (3) (4)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (Reply) (Go Down)

Currency Deal With China: Things To Know by NgeneUkwenu(f): 8:53am On Apr 14, 2016
Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have "certificate" but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

1. As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars

2. By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.

3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar

4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.

5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira

6. Nigeria imports almost all it needs from the West, Middle East and Asia.

7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.

8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”

9. FXR means foreign exchange reserves

10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...

11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..

12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.

13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.

14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.

18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.

19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming

20. Naming oil, refining and mining..

21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

Miss Ngene

181 Likes 22 Shares

Re: Currency Deal With China: Things To Know by DaBullIT(m): 8:58am On Apr 14, 2016
Another win for Certificateless , gworo chewing Daura President



I never regretted voting for Buhari


Do you ?

Buhari is Awesome !!!!!!!!!!!!!!!!!!!!!

omenka tonyebarcanista , seun , lalasticlala

318 Likes 12 Shares

Re: Currency Deal With China: Things To Know by Mynd44: 9:01am On Apr 14, 2016
Not 70% but it will take a lot of strain off exchange rates

17 Likes 1 Share

Re: Currency Deal With China: Things To Know by Seun(m): 9:02am On Apr 14, 2016
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

141 Likes 19 Shares

Re: Currency Deal With China: Things To Know by Emekamex(m): 9:02am On Apr 14, 2016
Good move but we all should be aware that China regularly devalues their currency in bid to make their export cheaper than the USA and other European producers, that is how they stay at the top.
Here is an excerpt from business insiders.
......The stark truth is nobody wants yuan anymore.
The U.S. dollar (USD) has gained over 35% against major currencies since 2011.
China’s government has pegged its currency, the yuan (renminbi) to the USD for many years. Until mid-2005, the yuan was pegged at about 8.3 to the dollar. After numerous complaints that the yuan was being kept artificially low to boost Chinese exports to the U.S., the Chinese monetary authorities let the yuan appreciate from 8.3 to about 6.8 to the dollar in 2008.
......The stark truth is nobody wants yuan any more. Why buy something that is sure to lose value? the only question is how much value? The basic facts suggest a 30% loss and a return to the old peg of 8.3 is baked in.
But that doesn’t mean the devaluation of the yuan has to stop at 8.3: just as the dollar’s recent strength is simply Stage One of a multi-stage liftoff, the yuan’s devaluation to 8 to the USD is only the first stage of a multi-year devaluation.

http://www.businessinsider.com/china-currency-devaluation-just-getting-started-2016-2

I will advise the government to limit forex to be converted to Yuan to around 6-8%, given China's unethical move of always devaluing their currency whenever their economy regresses in order for us not to lose our forex value.

23 Likes 8 Shares

Re: Currency Deal With China: Things To Know by Seun(m): 9:02am On Apr 14, 2016
Mynd44:
Not 70% but it will take a lot of strain off exchange rates
how exactly? Can you explain in detail?

5 Likes 2 Shares

Re: Currency Deal With China: Things To Know by Dmillionaire: 9:05am On Apr 14, 2016
I wonder why it's so difficult for pple to understand fraud at first sight. the same stealing politicians the same policy signing for years with no physical reality. please op wake up from ur long slumber, u are tooo big 4 this shit. these pple are political criminals simple. no be today yansh begin stay for back

31 Likes 1 Share

Re: Currency Deal With China: Things To Know by BiafraBushBoy(m): 9:18am On Apr 14, 2016
Nice Intention from Buhari....

BUT

Welcome to Nigeria where all this efforts will be sabotaged!!

I have nothing else to say....!!

15 Likes

Re: Currency Deal With China: Things To Know by Mynd44: 9:28am On Apr 14, 2016
Seun:
how exactly? Can you explain in detail?
If we do more of our importing from China, we will save a lot of strain on our local currency against the dollar by trading directly in the Chinese currency.

It is really a matter of demand and supply. Less people need the dollar for less strain.

21 Likes 4 Shares

Re: Currency Deal With China: Things To Know by showblack(m): 9:36am On Apr 14, 2016
Bubu is working

2 Likes

Re: Currency Deal With China: Things To Know by signature2012(m): 9:37am On Apr 14, 2016
Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more or if the price of oil recovers. Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations.

I can see we are on same page with this

issue,to me the same thing that happened to the dollar against Naira will also happen to the yuan against Naira soon.

Our level of importation has been so high before now and with this development it will aggravate it more,making us more dependent on imported goods which will surely affect our exportation strength.

Our local manufacturers will suffer it more except the govt will restrict some items not to be imported.

I await CBN approach on this,if it will still be the same old way whereby you have the CBN rate and BLACK MARKET rate for dollars,hope same won't be applicable to the yuan.

22 Likes 2 Shares

Re: Currency Deal With China: Things To Know by mrphysics(m): 10:11am On Apr 14, 2016
Oh God, so proud of you miss NgeneUkwenu.
Nice work you have been doing since may 29, 2015.

8 Likes

Re: Currency Deal With China: Things To Know by Seun(m): 10:34am On Apr 14, 2016
Mynd44:
If we do more of our importing from China, we will save a lot of strain on our local currency against the dollar by trading directly in the Chinese currency.
It is my understanding that we already import a lot of goods from China (alibaba, etc). Most Chinese exports are priced and paid for in dollars.

Some questions for you:
1) What was preventing us from doing more of our importing from China before we decided to borrow billions of dollars from China?
2) How exactly will our borrowing billions of dollars from China cause us to suddenly start doing more of our importing from China?
3) What was preventing us from using the Yuan to pay for imports from China before we decided to borrow billions of dollars from China.
4) How exactly will borrowing billions of dollars from China cause us to suddenly start paying for Chinese goods with the Yuan instead of dollar?

33 Likes 12 Shares

Re: Currency Deal With China: Things To Know by Truth234(m): 11:30am On Apr 14, 2016
Seun:

It is my understanding that we already import a lot of goods from China (alibaba, etc). Most Chinese exports are priced and paid for in dollars.

Some questions for you:
1) What was preventing us from doing more of our importing from China before we decided to borrow billions of dollars from China?
2) How exactly will our borrowing billions of dollars from China cause us to suddenly start doing more of our importing from China?
3) What was preventing us from using the Yuan to pay for imports from China before we decided to borrow billions of dollars from China.
4) How exactly will borrowing billions of dollars from China cause us to suddenly start paying for Chinese goods with the Yuan instead of dollar?

To be honest these are very important questions that most people won't ask, China is looking for ways to further her business reach while trying to transform its economy to a consumption dependent economy instead of exports, hence the need to invest in other regions where their exports can be pushed to.

China has been looking for a way to substantially infiltrate Africa's largest market, I am afraid Buhari offer that opportunity with this loan agreement. Nullifying every campaigns for diversification to enhance our exports via local raw materials.

In as much as the deal will allow importers and traders access both finished and unfinished goods at a lower commission, the long-term implications is more than what Nigerians are been sold.

17 Likes 2 Shares

Re: Currency Deal With China: Things To Know by GodpunishBuhari: 4:30pm On Apr 14, 2016
NgeneUkwenu:
Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have "certificate" but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

1. As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars

2. By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.

3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar

4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.

5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira

6. Nigeria imports almost all it needs from the West, Middle East and Asia.

7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.

8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”

9. FXR means foreign exchange reserves

10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...

11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..

12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.

13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.

14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.

18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.

19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming

20. Naming oil, refining and mining..

21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

Miss Ngene

lalasticlala Dominique Seun

if all you said is how it will be then it's a good stuff

2 Likes

Re: Currency Deal With China: Things To Know by mildflame: 6:21pm On Apr 14, 2016
Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

Mainstream economist like who? The World Bank, IMF or who excatly? How many economist foresaw the global meltdown? Did it have any effect on the CHINESE RUSSIAN and INDIA government?
How many financial CROOKS in wall street have u seen jailed?
PMB u are on track, developed your indigenous policy, stick to it n DAMN all "text book recommendations from so called MAINSTREET ECONOMIST", n watch naija smooth sail into El-Dorado economically.

66 Likes 2 Shares

Re: Currency Deal With China: Things To Know by dav8id(m): 6:49pm On Apr 14, 2016
For me, I think its a work weldone

4 Likes

Re: Currency Deal With China: Things To Know by godoluwa(m): 8:03pm On Apr 14, 2016
dav8id:


For me, I think its a work weldone
my question is, will it be readily available at official rate for those in need of it?

1 Like 1 Share

Re: Currency Deal With China: Things To Know by birdman(m): 7:15am On Apr 15, 2016
Muhammadu Buhari, Nigeria’s president, has negotiated a $6bn loan and a currency swap deal with China, as he continues to search for ways to revive an economy buckling under pressure from dwindling oil revenues.

Mr Buhari has been in China this week, meeting officials including President Xi Jinping, as he seeks to address a serious dollar scarcity and find funds for the infrastructure projects he says will get Nigeria’s economy moving.

His four-day visit signals a turn for Africa’s biggest economy toward China, now its biggest trading partner. Kemi Adeosun, Nigeria’s finance minister, said just before the visit that the country was considering selling a Chinese “panda” bond to help finance a budget deficit of about $11bn.

The deals reached were short on details. Industrial and Commercial Bank of China, the country’s biggest bank, and the Nigerian central bank agreed a deal on naira transactions but the size of the swap was not announced. The terms of the $6bn loan offer were also not disclosed.

Analysts doubted either would be enough to ease a slowdown caused by the oil price slump and worsened by policy choices.

The International Monetary Fund has cut its growth forecast for the year to 2.3 per cent, from a forecast of 4.1 per cent in January, and said currency controls enforced by the central bank and endorsed by the president are hurting business.

“They have removed a transactional difficulty for the moment,” said Chuka Mordi, founding partner of CBO Capital, a Lagos-based investment advisory firm, of the currency swap deal. “[But] there is a certain inevitability of having to face up to the facts. The balance of payments remains misaligned vis-à-vis the government’s long-term objectives.”

The Buhari administration wants to reduce dependence on imports. But analysts questioned whether the swap deal would contradict that goal, driving up Nigerian demand for Chinese imports if the naira seems artificially strong against the yuan in trading at the official rate.

“Buhari spent half the time he was in Beijing saying he wants closer ties with China and the other half saying Chinese firms cannot see Nigeria as a consumer market and that trade relationship is currently imbalanced,” said John Ashbourne, Africa economist at Capital Economics in London.

Even more puzzling, he added, was the prospect that China would fund projects to boost Nigeria’s manufacturing capacity and reduce reliance on imports.

“It’s one thing to want to invest in local industry to compete with Chinese imports. But asking the Chinese themselves to fund such investment is bold. I don’t know why China would see it in their interest to fund that,” he said.

A dispute between the president and the legislature over this year’s budget is delaying progress in securing funds for the $11bn deficit. Wariness over monetary policy also means borrowing in the Eurobond market may be more difficult than the government expected, analysts said, leading the government to consider new options, such as the renminbi-denominated bond.

http://www.ft.com/intl/cms/s/0/6e994bb0-0190-11e6-99cb-83242733f755.html

A more even handed analysis - looks like in principle this is a good deal. Maybe not the best, but I think its better than anything "traditional economists" would have offered

3 Likes 1 Share

Re: Currency Deal With China: Things To Know by Truth234(m): 7:34am On Apr 15, 2016
birdman:


http://www.ft.com/intl/cms/s/0/6e994bb0-0190-11e6-99cb-83242733f755.html

A more even handed analysis - looks like in principle this is a good deal. Maybe not the best, but I think its better than anything "traditional economists" would have offered

The wrong data invalidated the whole analysis
Re: Currency Deal With China: Things To Know by Pidggin(f): 7:43am On Apr 15, 2016
Even China have dollar reserves. Is it a mistake that the West and other important countries ignore the Yuan?

3 Likes 1 Share

Re: Currency Deal With China: Things To Know by NgeneUkwenu(f): 9:34am On Apr 15, 2016
lalasticlala please let's Nigerians know this!
Re: Currency Deal With China: Things To Know by signature2012(m): 9:37am On Apr 15, 2016
NgeneUkwenu:
lalasticlala please let's Nigerians know this!

Know what?I await what the exchange rate will be.

2 Likes

Re: Currency Deal With China: Things To Know by aloeman15(m): 10:33am On Apr 15, 2016
Pidggin:
Even China have dollar reserves. Is it a mistake that the West and other important countries ignore the Yuan?
In two sentences you've summarised the entire fate of this policy and its future effect on our economy.
Our import-driven, oil-based economy.
Look, just plan for a safety net for yourself and your loved ones, because this country has just signed its economic death warrant.

5 Likes 6 Shares

Re: Currency Deal With China: Things To Know by comos: 10:45am On Apr 15, 2016
FG should scrutinized this china deal very well before signing such that Nigeria is not turned into dumping ground for china products by through the Igbo traders. this will lead to closure of many industries thereby leading to massive unemployment.

Nigeria Industries should be strictly guided against these cheap china/Indian low quality goods.

6 Likes

Re: Currency Deal With China: Things To Know by Seun(m): 11:52am On Apr 15, 2016
mildflame:
Mainstream economist like who? The World Bank, IMF or who exactly?
Professor Soludo. Emir Sanusi Lamido Sanusi. Any Nigerian economist who is respected abroad. They are largely in agreement.

How many economist foresaw the global meltdown?
First of all, here's a list of 6 economists who predicted the meltdown: interblack.com.

Having said that, you seem to misunderstand the predictive role of Economics. Economics cannot predict exactly what will happen in the future because that depends on the policies politicians chose to implement, but it can predict what will happen if they implement particular policies.

Did it have any effect on the CHINESE RUSSIAN and INDIA government?
Yes, it drove Russia into recession, slowed China's growth, and strangled India's stock market.

32 Likes 3 Shares

Re: Currency Deal With China: Things To Know by Chubhie: 11:56am On Apr 15, 2016
Reminds me of the Laos-China high speed 418 kilometers rail tracks. Buhari should come clean and tell the true details.
Re: Currency Deal With China: Things To Know by VocalWalls: 1:53pm On Apr 15, 2016
grin

Many of you are just saying nonsense. Is it America that hiked the price of the dollar?

The problem is with the system, how are we sure the yuan won't go as high as 80 in the parallel market?

So when it gets to that, we then jump to cefa instead of fixing the system. Are we this dull?

20 Likes 1 Share

Re: Currency Deal With China: Things To Know by Icon4s(m): 1:53pm On Apr 15, 2016
As if the value of Dollars depends solely on the Nigerian economy. APC deceiving gullible Nigerians since may 29th, 2015.

5 Likes 2 Shares

(1) (2) (3) (4) (5) (6) (7) (8) (9) (Reply)

Saraki, Oyegun And Ahmed Lawan Meet (photos) / President Buhari Visits Cross River State (Live Updates) / Ikpeazu Gives Cars To Police And Doctors (Photos)

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2021 Oluwaseun Osewa. All rights reserved. See How To Advertise. 190
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.