ChoCandyDiamond:

Chinese businesses dont even want yuan because they dont trust it, they prefer USD

That's waht I just said and someone was arguing.

sensible youths shud come 2geda 2 bring transforning ideas for this country instead of being negative in blaming and fighting oppositn govt. We can only help each other.
#WereIsTheLove

989900:
When people say the Yuan is unstable, I wonder if the Dollar or any currency for that matter is totally immune to instability.

Look at what happened to the dollar some years back, or what is happening to the Euro now.

And since the yuan reserves will be largely for yuan purchases, I don't think we have any major issues there if it depreciates, actually it works in our favour when making purchases, it may not work in our favour if we have to pay back yuan debts in dollars (if we have a strong dollar).
However, if we have a strong economy and a strong Naira it still works in our favour.

Are we not missing something here,the Yuan is heavily regulATED, EVEN THE CHINESE EXPORTERS do not trust it hence the rather sell in Dollars
WHo here has ever bought a container load of any goods in YUAN if you buy from shops and do weigh Bill to Lagos then yeah, but if you go to factory where minimum purchase in 1x20 ft container then I am afraid its dollars.

KingGBsky:
sensible youths shud come 2geda 2 bring transforning ideas for this country instead of being negative in blaming and fighting oppositn govt. We can only help each other.
#WereIsTheLove

Govt are wicked they have always been to the youths, they dont care about you and me rather themselves only.If this govt really cares why not freeze tax on goods we export at least eh chinese have this kinda freeze

ChoCandyDiamond:

what will be the outcome at the long run and the benefit, will they buy our crude oil in yuan, who will buy excess yuan, dollar will end up been more expensive for other users because the forex market which is traded in dollars will collapse, in flow of dollar to Nigerian economy will stop, only people living abroad will be sending dollar home, Zimbabwe that try that how far for them, at the end of it, if Yuan fluctuate as usual inflation will skyrocket in Nigeria.

Oyeha we forget Zimbabwe, that's waht they did.

This is exactly how people sound when they are caught red handed.

haywire1:


Do u read news at all or r u just ignorant

I blame china phone manufacturers cos nairaland isnt for people like u

Use ur brain
#

amtaken:
Where's the proof?

Do you also ask for proof when the news favours you? Hypocrite.

China is trying to break the dollar jinx.

amtaken:
Where's the proof?

...........Go to the BDCs the proof dey inside dem office!

Heffalump:


Soludo, you have nailed it, period. Wailers will not believe what you said, they will rather seek to crucify you. GEJ was the baddest thing that ever happen to Nigeria. It will take more than a decade to reel out of the pain inflicted on Nigeria by this son of a man call Ebele Jonathan, Not Goodluck!!!

Since we are directly under our state government it would be nice for us to ask our state governors what they did with their share B4 we go to federal govt

BodyKiss:


Do you also ask for proof when the news favours you? Hypocrite.

The proof is in Zimbabwe

SamuelAnyawu:
Might be true tho..

If demand for dollar decreases surely naira will appreciate...

Simple Econs101

hmmmmm watching from an iroko tree in daura forest. when the naira appreciates against da dollar i will come down. meanwhile, am suspending myself on this iroko tree till 2019. damboroba shege biu

MENTORCH:


I think it will work because 60percent of the people who always need dollar are the importers; they import most of their goods from China,so what will they be doing with dollar when they can change to Yaun directly.

SO you think they are going to hold physical YUAN

igwegeorgiano:
hmmmmm watching from an iroko tree in daura forest. when the naira appreciates against da dollar i will come down. meanwhile, am suspending myself on this iroko tree till 2019. damboroba shege biu

dont worry in 2019 you will hit teh ground running

amtaken:
This is exactly how people sound when they are caught red handed.

erico2k2:

SO you think they are going to hold physical YUAN

No they will hold spiritual YUAN, is it not a currency?

dustmalik:
The wailers hate this kind of news

Wailers you so dumb.... U very dumb any dude wif a joystick knows we ought to trade with yuan as well as dollar

Maybe its big news for your illiterate self

To me its long overdue


Guess fuel selling for 87 at this kain times that oil price per barrel has drop wil amaze u as well

Again u dumb u very dumb

MENTORCH:


No they will hold spiritual YUAN, is it not a currency?

I suggest we visit the terms of the swap agreement.
what happened to the PAY THE SUPPLIER ON OUR BEHALF part of the deal?or you are forgetting is loaned? or mayB Im the one not getting the gist right

SamuelAnyawu:
Might be true tho..

If demand for dollar decreases surely naira will appreciate...

Simple Econs101

And when crude oil prices appreciates in addition to that the Dollar will fall still further.

Flets:
What will china be doing with a swapped naira? What market will they trade the swapped Naira? What is our volume of export to reciprocate supposed chinese yuan import?

In its simplest term, Nigeria needs yuan but does china need naira?

Behind the answer to this question lies the gullibility of Nigerians.

Hate, can be very devastating. Its a Swap deal, China I.e advance Nigeria 4B Yaun. CBN sell the Yaun to importers at a mark up, China buys from us and pay in Dollars. Remember the balance of payment is in China favour.

erico2k2:

Are we not missing something here,the Yuan is heavily regulATED, EVEN THE CHINESE EXPORTERS do not trust it hence the rather sell in Dollars
WHo here has ever bought a container load of any goods in YUAN if you buy from shops and do weigh Bill to Lagos then yeah, but if you go to factory where minimum purchase in 1x20 ft container then I am afraid its dollars.

Chinese manufacturers will always quote in dollars, no doubt . . . neither did we have a choice than oblige them.

That helps them cook the books, like you rightly mentioned earlier . . . they will tell you, for larger transactions you'll have to pay to their Hong Kong dollar account and yada, yada, yada . . .

But, like I said earlier, it's up to you to tell them and insist you have only yuan, especially since that should favour us now.

There are tons of suppliers in China, you have to know your way around.

Worst case scenario, transfer your Yuan to China and change it to dollar (the loss is negligible) -- I have done transactions in excess of $100k (probably that's not big enough to qualify for your scenario) with companies in China -- you need to know your way around the city and around the system, the Chinese themselves will tell you the mutually beneficial thing to do.

What the Yuan deal affects directly is, the artificial pressure on the dollar in Nigeria, especially BM and parallel market rates (such as you will see the BM rate move closer to the CBN rate -- it won't automatically make the Naira gain more than 5-10% against the Yuan at the CBN rate, until the Naira appreciates against the dollar for real at official rate (that takes more than a Yuan deal to achieve, that takes earning more from exports,and reducing imports by manufacturing, refining our own oil, and smart-out-of-the-box monetary policies).

P.S. I know you won't still agree, but like always, in few days or weeks as usual between you and I, my position on the matter will be practically re-confirmed for you to verify.

989900:


Chinese manufacturers will always quote in dollars, no doubt . . . neither did we have a choice than oblige them.

That helps them cook the books, like you rightly mentioned earlier . . . they will tell you, for larger transactions you'll have to pay to their Hong Kong dollar account and yada, yada, yada . . .

But, like I said earlier, it's up to you to tell them and insist you have only yuan, especially since that should favour us now.

There are tons of suppliers in China, you have to know your way around.

Worst case scenario, transfer your Yuan to China and change it to dollar (the loss is negligible) -- I have done transactions in excess of $100k (probably that's not big enough to qualify for your scenario) with companies in China -- you need to know your way around the city and around the system, the Chinese themselves will tell you the mutually beneficial thing to do.

What the Yuan deal affects directly is, the artificial pressure on the dollar in Nigeria, especially BM and parallel market rates (such as you will see the BM rate move closer to the CBN rate -- it won't automatically make the Naira gain more than 5-10% against the Yuan at the CBN rate, until the Naira appreciates against the dollar for real at official rate (that takes more than a Yuan deal to achieve, that takes earning more from exports,and reducing imports by manufacturing, refining our own oil, and smart-out-of-the-box monetary policies).

P.S. I know you won't still agree, but like always, in few days or weeks as usual between you and I, my position on the matter will be practically re-confirmed for you to verify.

I am not disputing what you said, however Im considering the Zimbabwe factor.I think most of us Nigerians will still prefer to buy Yuan in Nigeria convert it to Dollars in China as sales in Dollars give them the Chinese factories forex and tax rebate.Also bear in mind the vast majority of goods we buy from china own their parent companies outside of china, ie the major phones,Electronics and car parts.They where attracted to china cos of cheap labour less robots more manpower.I think the owners too would prefer dollars to the yuan.Anyway like you say, let us see waht the coming months bring but i n all with the present state of affairs, something got to give ooh or else we are in deep poo.Everybody is holding on to their physical cash.

"if" but even China keeps their reserves in dollars.... International Trade and Finance Econs 702.

SamuelAnyawu:
Might be true tho.. If demand for dollar decreases surely naira will appreciate... Simple Econs101

modath:


Bros, but the yuan to naira regime hasn't even commenced yet, so effects shouldn't be felt yet...

Are you with me? Is trade not supposed to be in full force before big drops begin to happen?

Which if one can take a wild guess points to specularion manipulation, & Sabotage..

The crash from 390 to its 320 band convinced me that even in the throes of forex scarcity, sharp practices abound..

Naija for show!!!

Bros, u are not a finance person.

Speculation effect

that move will flood the country with dollars and any appreciation of the dollar against the yuan will depreciate naira. Nigerians buy the yuan travelling to China Chang the yuan to dollar buy from anywhere in the world or better come home with the dollars. scarcity of dollar in China will depreciate the yuan affecting the naira

I used my ATM just yesterday and I was charged 357 for 1 euro....

So what are they saying?

Sant1m:
Hate, can be very devastating. Its a Swap deal, China I.e advance Nigeria 4B Yaun. CBN sell the Yaun to importers at a mark up, China buys from us and pay in Dollars. Remember the balance of payment is in China favour.

We buy items worth billions of dollars monthly from china, so what does china buy from you to balance out payments?

amtaken:
Where's the proof?

Wait and See

Should we see this as negative or positive change?

amtaken:
Where's the proof?

continue asking Thomas

I've heard enough propaganda and outright lies, I say enough! Implement the policy that I may benefit, only then will I commend the good work.

Silly post, doesn't matter what currency u use, a naira wil only be worth what it's worth