So I came across this analysis n decided to get your views on it.

Here it goes:

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.




Does this mean I can now buy my dream China phone?

Initialize
Elijahdre
Just4tech
Lstar4real
Nsonaso
Jeffy1206
Justi4jesu
Lalastica

you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.

nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?

already, 25% of our annual budget is used yearly to service old debts, now pmb is adding extra load on the 25% that will start repayment by 2017, that is to say not less than 35% of yearly budget will be used for debt servicing. (e.g: in every N1trn, not less than N350b goes to just serving) I weep for our children unborn.

he that goes borrowing, goes sorrowing

Dmillionaire:
you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.

nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?

The layman's analysis is not mine o lol

well your view is respected sir

About Nigeria becoming the dumping ground for China economy, although there will always be merits n demerits for any decision taken in this world so i want to believe the merits of this deal supersedes the demerits, coz you n I know regardless of this new deal that was signed, we've always import from China
Let's imagine how this deal will help in the importation of infrastructural materials.

Its now left for us not to depend our ALL on them

harmbhrosz:
So I came across this analysis n decided to get your views on it.

Here it goes:

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.




Does this mean I can now buy my dream China phone?

Initialize
Elijahdre
Just4tech
Lstar4real
Nsonaso
Jeffy1206
Justi4jesu
Lalastica

LOL. I PRAY SO. WAITING FOR YOUR ORDER

Will be very good idea...

harmbhrosz:




Does this mean I can now buy my dream China phone?


Initialize

Hi,



If you understand the currency market in Nigeria so well you would understand that stakeholders in currency biz usually create scarcity themselves such that they control the business to favor them and such they make more profit from it.

Presently, the official rate for $1 is #199 but bank charges #300 or more when you purchase on American site which charge directly in USD while BDC exchange it for #325. The same will happen with the Yuan when currency sellers realize there's demand for it. Just wait and see.


I took a cab last week and the cab man said there's shortage of the USD notes in America as a result of Nigerians hoarding it in cash here in Nigeria same thing will happen with the Yuan when it becomes a mean of trade with huge demand.


So don't be too excited yet, let's wait and see how it goes when it will.

I'm hoping for the best too but I won't get excited so as not to be disappointed.



It is well


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Bleep Nigeria and China.

You can only shop online at N194/$ from china if You can get a debit Card issued by CBN. until then, your rate remains 300/$

I just ordered from China at aliexpress And Uba charged me 350 per dolls

martinz1:
I just ordered from China at aliexpress And Uba charged me 350 per dolls

Really? That's serious o. Na waiting things be that. Can't wait for to start buying from aliexpress again.

harmbhrosz:
The layman's analysis is not mine o lol

well your view is respected sir

About Nigeria becoming the dumping ground for China economy, although there will always be merits n demerits for any decision taken in this world so i want to believe the merits of this deal supersedes the demerits, coz you n I know regardless of this new deal that was signed, we've always import from China
Let's imagine how this deal will help in the importation of infrastructural materials.

Its now left for us not to depend our ALL on them

made in China? Just be prepared to be replacing whatever you bought every six month.

LOVEGINO:
made in China? Just be prepared to be replacing whatever you bought every six month.

Iphones are made in china

LOVEGINO:
made in China? Just be prepared to be replacing whatever you bought every six month.

China makes products according to ur pocket and specifications. they have low quality products as well as top of the line quality. Right now about 70% of electronic/electrical products are made in China. Iphones, ps4, LED TV, pumping machines, blu ray players, etc are all made in china.

U based ur analysis on many assumptions yet, u do not speak as though u are aware of those assumptions.
Am not about to make this a lecture bt simple economics should tell u we gave dollar d strength it has against us today. Not because of our import reliance (cus we've been reliant from time immemorial n naira never had it this worse) bt because of d govt's one policy. If d dollar wasn't restricted in d first place, dis mess wouldn't hav been created. By restricting d access to dollars when we deal with dollars in d international market (china doesn't amount to all our imports), d amount of dollars available becomes small (dollar scarcity) and less than d amount people usually had access to. The demand for dollar therefore became higher dan its supply (availability). What else do u expect to happen if not d shuttle increase in d value of dollar against d naira. Govt caused dis n believe me yuan alone is nt enough. Until dey realize this and fix it, we'll still b down or probably experience a marginal improvement.

harmbhrosz:
So I came across this analysis n decided to get your views on it.

Here it goes:

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.




Does this mean I can now buy my dream China phone?

Initialize
Elijahdre
Just4tech
Lstar4real
Nsonaso
Jeffy1206
Justi4jesu
Lalastica

Every Chinese online mall deals with dollars... nobody wants the useless yuan. Go to gearbest and buy at $194.4 lemme see.

harmbhrosz wadup bro !!

Whichever way you choose to look at it, having access to and being able to pay with the yuan is a welcome idea. This is especially moreso when you consider how dependent many people have become on China-made products around here. This will, at least, reduce the pressure the dollar is exerting on the naira. And about that argument of local industries suffering from importation, that is a possible downside. But then, most people around here have always depended on imported items.

All these talk about Yuan, when do we start using it na? Im beginning to think it's just a mirage

Dmillionaire:
you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.

nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?

already, 25% of our annual budget is used yearly to service old debts, now pmb is adding extra load on the 25% that will start repayment by 2017, that is to say not less than 35% of yearly budget will be used for debt servicing. (e.g: in every N1trn, not less than N350b goes to just serving) I weep for our children unborn.

he that goes borrowing, goes sorrowing

nigeria is already a dumping ground of china goods or cant you them in the market?

Not sure

am here to read reasonable comment

harmbhrosz:
The layman's analysis is not mine o lol

well your view is respected sir

About Nigeria becoming the dumping ground for China economy, although there will always be merits n demerits for any decision taken in this world so i want to believe the merits of this deal supersedes the demerits, coz you n I know regardless of this new deal that was signed, we've always import from China
Let's imagine how this deal will help in the importation of infrastructural materials.

Its now left for us not to depend our ALL on them

Matured comment.... I love that .... For respecting other's opinion.

This deal will only increase the value of the Yuan against the naira.

Its not export based. The president goofed.

coupled with the other gaffes and fayose's letter, the guys rating plummeted, with it goes the stock market

finalboss:
harmbhrosz wadup bro !!

FinalBoss I gallant o, I don find my hand tire abi e dey ur side?

Dmillionaire:
you don't use layman's calculation in this case study, it is more complex than you think in macroeconomic cases of this nature.

nigeria might become a dumping ground for China economy, thereby killing production sectors at the long run.
nigerian government don't want to devalue the naira, but China devalues on a constant basis of 8 months to 2yrs
Chinese foreign Reserve in in dollars, while nigeria is trying to use yuan as a second to naira, how do you explain that?

already, 25% of our annual budget is used yearly to service old debts, now pmb is adding extra load on the 25% that will start repayment by 2017, that is to say not less than 35% of yearly budget will be used for debt servicing. (e.g: in every N1trn, not less than N350b goes to just serving) I weep for our children unborn.

he that goes borrowing, goes sorrowing

Are you trying to tell us you're a better economist than the CBN president and other top economist in Nigeria?

greenhulk:


China makes products according to ur pocket and specifications. they have low quality products as well as top of the line quality. Right now about 70% of electronic/electrical products are made in China. Iphones, ps4, LED TV, pumping machines, blu ray players, etc are all made in china.

my guy how far nau

I don't know if I can import assorted bushmeat from China. cos right now I have enough yaun,
Gyarbonka Shakalalalaaaaaaaa........

MrBONE2:
I don't know if I can import assorted bushmeat from China. cos right now I have enough yaun,
Gyarbonka Shakalalalaaaaaaaa........

lol...oya order na, at least their own go dey Ebola free funny guy