AntiIPOOP:

In simple terms, PMB has just strengthened the Naira by 9.15%!

And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.

thesicilian:
This is proof that you don't need a PhD to rule this country. Commonsense alone is enough.

kayfra:
Just wait till China devalues the yuan like they normally do. You'll scream bloody murder.

kayfra:
Just wait till China devalues the yuan like they normally do. You'll scream bloody murder.

Paretomaster:


if they devalue their Yuan, then our naira will be strengthen against d Yuan....abi I lie?

udumosam23:



I don't see how their devaluing the yuan will affect us, the more they devalue their currency, the cheaper we get their product.

speaking from a layman's point of view though.

kayfra:


It will keep imports from China attractive while we lose our mojo to diversify.

sinkhole:
Have we diversified since we started trading in dollar? Diversification is our character and not the currency we trade in!

kayfra:


It will keep imports from China attractive while we lose our mojo to diversify.

kayfra:
Just wait till China devalues the yuan like they normally do. You'll scream bloody murder.

izospindle:

no no no you are getting it wrong .......if china devalue their currency the naira will strengthen against the Yuan......do u kw even the dollar losses value at times. this it is the yuan thats losing value and not the naira. the naira will remain the same

kayfra:
Just wait till China devalues the yuan like they normally do. You'll scream bloody murder.

iblawi:
if China devalues the yuan it will still be in our favour. It's just like saying US is devaluing the dollar.

AntiIPOOP:
The school cert holder has done what a PhD holder could not.

Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?

So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.

The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.

So how does it favour us? Simple.

The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.

Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?

In simple terms, PMB has just strengthened the Naira by 9.15%!

And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.

May God bless PMB.

AntiIPOOP:
The school cert holder has done what a PhD holder could not.

Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?

So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.

The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.

So how does it favour us? Simple.

The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.

Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?

In simple terms, PMB has just strengthened the Naira by 9.15%!

And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.

May God bless PMB.

udumosam23:



I don't see how their devaluing the yuan will affect us, the more they devalue their currency, the cheaper we get their product.

speaking from a layman's point of view though.

iblawi:
if China devalues the yuan it will still be in our favour. It's just like saying US is devaluing the dollar.

kayfra:


Naira will be strong and based on past experience rather than use it to buy equipment, we'll use our money to buy toothpick and chicken from China. We are still exposed to shocks from Bejing. That's for the consumers.

For the government, if we keep our reserves in Yuan, when China devalues then our reserves tank. The yuan devaluation is typically an intentional move by the government and not controlled by the market.

Even the Chinese government maintain a dollar based reserve.

kayfra:


We have a genuine opportunity at the moment to right the ship. It will be a disaster if we don't fix the long term problem for a short term fix by being on China's leash.

At the end of the day, if most of our trades are within Nigeria like in other developed countries, then our fate won't be so dependent on foreign currencies.

AntiIPOOP:
The school cert holder has done what a PhD holder could not.

Very simple economics. We buy most of our goods from China, so why must we pay the Chinese in dollars? The Chinese buy a lot of crude oil from us, so why must they pay us in dollars?

So PMB made a deal with the Chinese. We pay for the goods we buy from China in Yuan, the Chinese currency. They buy our crude oil and pay in Yuan.

The exchange rate is to be pegged at 30 Naira to one Yuan or RMB.

So how does it favour us? Simple.

The Yuan is now 6.48 to a dollar. So if you pay 30 Naira to the Yuan, that would be equivalent to 194.4 Naira to the dollar.

Since the dollar exchanges for 199 Naira, you save N4.6. 199 - 194.4 = 4.6. Simple, huh?

In simple terms, PMB has just strengthened the Naira by 9.15%!

And that's not the end of the story. As we begin to deal in the Yuan, the demand for dollar would plummet and this in turn would weaken the dollar. It would crash to around 140 Naira to the dollar.

May God bless PMB.