Thanks OP
In as much as this deal looking yummy, we should take a caution here, have we ever thought on how this will impact our [/i]made in nigeria goods[i] and our small and medium scale manufacturers, because its going to be cheaper to ship in goods now, even before this deal there has been masssive inflow of china goods in nigeria with no standard ( fake) and there is no body or govt board/ parastatal checkmating and censoring our market, now that its easier to lay our hands on yuan easily, what will happen to our local made products?

Although this deal is cool but i personally think there should be a strict law to checkmate the spending and the disbursement of the loan. I personally think there should be minimum amount to be spend monthly, and i think they should make it more accessible to registered manufacturers and raw material merchants than the whole entire populace, and there should be a list of what we can buy and what we can't buy from china, they should place an embargo on importation of what we produce locally becuase at the end of the day china will smile home with their achievement and we might come out worse at the end of this deal than we went in.


Pardon my composition and this is just my view and take so be lenient on your bashings

I think we just have to wait and see, no one really needs the true details of his deal.
Logically just the announciation of the deal should boost the naira in the market, yet dollar has appreciated to 322
So Na to wait and see sure pass

Now tell me who benefits most from this deal?

franciskaine:
our policy makers atimes amuse me. Though with the attendant positives of this bilateral agreement, your assertion that companies will close shop is spot on. How do we boost local production tru d importation of cheap foreign produce, I still wonder d economic magic and explanation to this.

Sophisticated minds already know the long term negative effects of this will take atleast 20 years to correct. We are even yet to talk of mining concessions dashed to the Chinese. This deal shows how comatose and desperate the economy and buhari are.

And Yahoo boys can no scam China directly too. Lol

leksmedia:
Nigeria – China Currency Deal

The President Muhammadu Buhari and the Chinese President Xi Jinping, recently signed a bilateral currency agreement which was between the people’s Republic of China and Nigeria which also comes come with a lot of benefits to the two countries. China is a county that thrives on imports and production of cheap goods exported all over the world and also China accounts for over 70% of Nigeria’s total imports.

This deal, apart from its economic benefits, it also comes with billions of dollars in loans, infrastructural development, investment opportunities and job creation.

China once again has successfully won one of the biggest African market (Nigeria), no wonder it quickly made Nigeria its clearing house for Yuan denominated transaction for the whole of Africa. This has a lot of economic significance to Nigeria and Africa as a whole. It can simply be interpreted as Nigeria being the financial clearing house to any Yuan transaction in Africa.

China is currently showing the world that it has everything it takes to become the world power. This has always been their challenge with the United States of America who feels threatened by this. So listed below are the biggest winners and losers for this new deal.


Nigeria – China Currency Deal – The biggest winner

1. China : On the long run, the Yuan will become one of the most traded currency in the world overtaking the dollar. This is one of Chinas biggest goal. It will also pave way for more investment opportunities for China in Nigeria.

yuan naira

2. Nigeria : This will help foster strong economic and infrastructural growth to Nigeria, It will create more jobs, It will allow businessmen to easily carry out transactions between them and their counterparts in China. It will provide easy access to loans for Nigeria and Nigerian businesses from China.
3. Importers :- 70% of our imports are currently from China, with the new deal, this means our importers won’t have to first convert their money to dollar before buying in Yuan. Importers will have to deal directly with their buyers in Yuan. For example

If an importer is to buy a good from China worth 6467 Yuan. He will first need to change his naira to dollar. (N320,000=$1,000 ) then change the $1,000 dollars to Yuan which is 6467.00 . But if he decides to change to Naira directly then 1 Yuan is N30.80 naira x 6467 = 199,209.24 .

In the first Calculation he will be spending 320,000 – 199,204.24 = 120,796. In the first process , the importer will lose 120,796 just because of the currency conversion. But with this new deal importers will have a lot to save and we should also expect a reduction in the price of goods exported from China

Bureau De Change/Banks – it means more people will be changing naira to Yuan as compared to naira to dollar.

Sellers of China goods – There will be more people shipping and buying from China as compared to before, therefore it means there will be more money to be made. Companies can easily import raw materials to produce from China.

China Investors: This will provide easy access for China investors to easily penetrate the Nigerian market.

Dangote: This deal also paved way for Nigeria’s billionaire and the richest man in Africa Aliko Dangote, as he will be getting a wooping sun of 2 billion dollars for the construction of two cement plants.

Nigeria – China Currency Deal – The biggest losers

USA – The US is gradually losing its international market share to China, this is because China is gradually becoming more daring and eating deep into their market. China has succeeded in eating deep into their share of the market as a result of several deals with the United Kingdom, Russia, India, and many other countries.
IMF – The international monetary fund (IMF) has been wooing Nigeria to come take its loan which comes with several terms and conditions which some economist have said is not in the best interest of Nigeria but rather will make our economy worse than it is in the long run. Some also claimed most of the terms and conditions favours the western Countries more than it favours us.
The Opposition: The Nigerian opposition party has faulted so many claims in the recent deal with China, but China is bent to continue with the deal.



Source : www.businessmopol.com/nigeria-china-currency-deal-the-biggest-losers-and-winners

O you just made my day.

This is what our hopeless president and his mumu finance minister could not explain to us.

Oya, na made in China things all the way now.

How come OP is not talking about the impact of excess imports from China on our local industries? I thought Nigeria had a plan to stimulate her economy by strengthening local industries - not killing them with excessive imports from China!

Economics teaches that excess importation results in unfavourable balance of trade which in the long run hurts the local economy. I thought we could encourage local industries to spring up and allow healthy competition to take place among them which will subsequently make prices of goods to come down without compelling our local industries to close shop. As it is now, importers can now import "just anything" from a China that has comparative advantage over Nigeria in manufacturing.

Who's thinking in this direction?!

The scary thing is that China will give Dangote "DOLLARS", but they want Nigeria to trade and keep fx in yuan!

To me in all honesty, this move will further weaken Small Scale Manufacturing business because locally manufactured goods
may not be able compete effectively with imported goods from China. As we know, the cost of Labour is very cheap over there...

leksmedia:
Nigeria – China Currency Deal


3. Importers :- 70% of our imports are currently from China, with the new deal, this means our importers won’t have to first convert their money to dollar before buying in Yuan. Importers will have to deal directly with their buyers in Yuan. For example

If an importer is to buy a good from China worth 6467 Yuan. He will first need to change his naira to dollar. (N320,000=$1,000 ) then change the $1,000 dollars to Yuan which is 6467.00 . But if he decides to change to Naira directly then 1 Yuan is N30.80 naira x 6467 = 199,209.24 .

In the first Calculation he will be spending 320,000 – 199,204.24 = 120,796. In the first process , the importer will lose 120,796 just because of the currency conversion. But with this new deal importers will have a lot to save and we should also expect a reduction in the price of goods exported from China

falsehood borne out of ignorance.


If you are buying your dollar on the black market, you are still going to buy your yuan on the black market or (more likely than not, there wont be yuan available on the black market and you still have to buy dollars to convert to Yuan)

The 1 Yuan is N30.80 naira is only applicable to forex obtained from CBN, most traders dont obtain forex from CBN. If the Yuan becomes freely available in Nigeria it will probably trade around 1 Yuan is N45 naira, you'll find out in the end there is no difference



The only advanbtage in this deal is you dont have to pay the inherent commission in converting currencies twice. I repeat the only advantage from this deal is not having to pay for conversion twice, when you work it out your purchases will still be equivalent to !99 to dollar or 320 to dollar, the only difference is as it is now, the source of your forex, CBN or black market.


The government did not tell you dollar will fall, govt did not tell you imports will be cheaper. It is the uninformed, ignorant, overzealous supporters of the govt and APC that are peddling false hope. Please I want ths govt to succeed so stop peddling falsehood because when dollar doesn't come down (as it won't) people will turn around and say govt said this, govt promised that. Govt did not promise anything!!!!!!

oga curse me..who ur cure don epp..u dey curse u never balance yet u dey blame ur village peole..oga reason ur life ooo and free mine..

tempest01:


Make I just ignore this your post....Make I no curse your generation this afternoon....

PMB all the way.

i'm yet to see the benefits. even Chinna relys on the greenback for global transaction.

All dis benefits still boil down to "imports". I thought we are working on reducing to d bearest minimum our imports. This step does more of encourage imports from China. So 70% of Nigerian imports is from China? Damn it!
So what do we export to China?

Pls wail into a paint bucket. Person fit use am flush... Lol

elmisti:
Very very clumsy write up filled with assumptions and fallacious elements!.....before u brand me a wailer....Nope am not a full time wailer but Nigeria-china..I will wail!

Here is my angle of argument



#1--Yuan is nowhere near the dollar and should never b compared to it...d distance is jst too far!

#2--Nigeria major export which is oil still sell with dollar

#3--No ntion can run away from dollar, even russia reserve is in dollars!

#4---why is Dangote getting his loan in dollars and not Yuan

#5--70% of import from china is jst a number, u mean spoons, ceramics, fake electronics nd co Our exchange of oil with netherlands beat the price of our exchange with china in a year!

#6--Even if they try to twist their way out of dollar, what of gold??

#7---If china keep filling our market with their goods...what happens to our own local industry

#8--China Yuan is one of the unstable currency of d world!


Am done wailing, sm1 shld hand me tissue paper to clean up......God jst keep using dis nation to show isrealites that 40yrs in d wilderness is a generous punishment

elmisti:
Very very clumsy write up filled with assumptions and fallacious elements!.....before u brand me a wailer....Nope am not a full time wailer but Nigeria-china..I will wail!

Here is my angle of argument



#1--Yuan is nowhere near the dollar and should never b compared to it...d distance is jst too far!

#2--Nigeria major export which is oil still sell with dollar

#3--No ntion can run away from dollar, even russia reserve is in dollars!

#4---why is Dangote getting his loan in dollars and not Yuan

#5--70% of import from china is jst a number, u mean spoons, ceramics, fake electronics nd co Our exchange of oil with netherlands beat the price of our exchange with china in a year!

#6--Even if they try to twist their way out of dollar, what of gold??

#7---If china keep filling our market with their goods...what happens to our own local industry

#8--China Yuan is one of the unstable currency of d world!


Am done wailing, sm1 shld hand me tissue paper to clean up......God jst keep using dis nation to show isrealites that 40yrs in d wilderness is a generous punishment

Thumbs up!
A lot of Nigerians are living in fallacious assumptions of how the China - Nigeria currency swap will boost the economy without even looking at the recitals of the agreement.

The major reason China offered Nigeria the currency swap deal is to protect her foreign reserve. The Chinese government tightened her foreign exchange policy 2wice in the last 6months. They made accessing dollar so tough in China to combat dollarization, manufacturers are all groaning at their excessive losses. China's foreign reserve is fast depleting as it expands to be the worlds center for cheap labor and production. China's foreign reserve is in dollars not Yuan

It is even dumber when you see people say Yuan will outscale the dollar and will be the most traded currency in the world. A lot of our youths spend time watching HipTV. Even the ones working at CBN and the Banks have no clue about how the world economy runs and World Trade works. The world bank is situated in Switzerland, still it operates the US Dollar as the base for its transaction

Nigeria is paying back her yuan loan in dollars, see how smart China is, which means even if the Yuan losses value, it is at the detriment of Nigeria. I have seen quite a lot of person wake up and dream that prices of goods and commodities will become cheaper with a malicious way of converting the Yuan to Naira. Let me give you a lame man counter to how people talk about the Yuan.
"Are you saying I could walk to a Nigerian bank or Bureau de Change get the Yuan, fly to China and convert to dollars, fly back to Nigeria and recycle in the parallel market for gains".

Don't get me wrong I am not saying the Nigeria-China swap deal is not good. But the impact is not as purposeful as it is being projected

And I wouldn't surprise if US tomorrow go against PMB and Nigeria

The honest truth about this deal is that Nigeria has taken 50 steps backward ,except there are things which the FG isn't telling Nigerians . All the policies of obj,yar adua and gej on improving the nation manufacturing base is about to be wiped off all because of 6billion dollars

The writer forgot a few points. It also means I will rather buy vegetable oil imported from china at #700 for five litres instead of buying from naija manufacturers whose cost price is more than #700 & have to sell for #900 so as to make profit.
It also doesn't provide any job since most manufacturers will have to fold up if the first point is not well curbed.
D writer claiming usa will lose is a comic, even china is storing USD. They want to get back USD not even yuan plus the FG is yet to tell us who pays the interest on the swap & how much exactly was swapped & how it will be circulated

elmisti:
Very very clumsy write up filled with assumptions and fallacious elements!.....before u brand me a wailer....Nope am not a full time wailer but Nigeria-china..I will wail!

Here is my angle of argument



#1--Yuan is nowhere near the dollar and should never b compared to it...d distance is jst too far!

#2--Nigeria major export which is oil still sell with dollar

#3--No ntion can run away from dollar, even russia reserve is in dollars!

#4---why is Dangote getting his loan in dollars and not Yuan

#5--70% of import from china is jst a number, u mean spoons, ceramics, fake electronics nd co Our exchange of oil with netherlands beat the price of our exchange with china in a year!

#6--Even if they try to twist their way out of dollar, what of gold??

#7---If china keep filling our market with their goods...what happens to our own local industry

#8--China Yuan is one of the unstable currency of d world!


Am done wailing, sm1 shld hand me tissue paper to clean up......God jst keep using dis nation to show isrealites that 40yrs in d wilderness is a generous punishment

you know ?
when the differences are the same
its very difficult to explain that Jesus is the Christ, not a Christian but the followers are to an intelligent church attender.

A deal has just been made. It has not yielded anything positive and the zombies have started singing praize songs for their god

Last bullet
Pls zombies let's see the benefits of this deal before you start clapping your hands in praize

USA – The US is gradually losing its international market share to China, this is because China is gradually becoming more daring and eating deep into their market. China has succeeded in eating deep into their share of the market as a result of several deals with the United Kingdom, Russia, India, and many other countries.

IMF – The international monetary fund (IMF) has been wooing Nigeria to come take its loan which comes with several terms and conditions which some economist have said is not in the best interest of Nigeria but rather will make our economy worse than it is in the long run. Some also claimed most of the terms and conditions favours the western Countries more than it favours us.

This's what I've saying ever since to educate my fellow Africans that the IMF and world bank need us more than we need them.

Western powers are scared now, they're literally fighting for their survival. That's the reason Ms. Lagarde has been frequenting Nigeria.

NB: The article forgot to add the world bank as major losser- it's a US instrument though.

Well articulated.
Our prayers is that enemies of progress do not hijack the prices and turn it inside out just to same they know it was a scam.

The CBN and FG have to be firm in implementing this as soon as the budget comes astream.

robinsoncrosoe:
A deal has just been made. It has not yielded anything positive and the zombies have started singing praize songs for their god

Last bullet
Pls zombies let's see the benefits of this deal before you start clapping your hands in praize

Doubting Thomases
Una no go tire?
Do you even believe in your existence?

And yet PMB is an illiterate. ? The clueless black market phd holder was there for 5 yrs not knowing this . God bless PMB

Until then. Hopefully people will be sending their children to chinese university

In order to praise the govt, you guys just to quick to exaggerate things but forget that these are just assumptions. If these don't work few years from now, you will start pointing blames here and there.

All this make sense if it work our as plan but it does not make any sense when it come to cleaning or pay customs duty in nigeria, e.g buy goods 1000 from chinco counrty and getting to 9ja the customs duty is 2000 does that make any sense?
The Govt should do something with the customs duty

good as it may seems, the end shall justify the means. and untill this parley with China starts having direct positive bearing on me and my fellow country men, i choose to remain a doubting thomas. God bless Nigeria.

eyah hopefully eh go better

Explain to me how USA loses because we using yuan as exchange rate

Dollar is most accepted form of exchange bar pounds

It is stable.... Time trusted.... D greenback make sense


Look at jus some business terms associated wit dollar greenback

Usa loses nothin say we choose yuan

U make it sound as if nigeria is a mover and shaker in d world

China is greedy.... At least usa are nt only bout their personal gain

China is all about their personal gain trust me.... Hold ur country ransom so dat a time will come wen u can kidnap taiwan citizens hand dem straight to china jus lik kenya recently did

TPAND:



Thumbs up!
A lot of Nigerians are living in fallacious assumptions of how the China - Nigeria currency swap will boost the economy without even looking at the recitals of the agreement.

The major reason China offered Nigeria the currency swap deal is to protect her foreign reserve. The Chinese government tightened her foreign exchange policy 2wice in the last 6months. They made accessing dollar so tough in China to combat dollarization, manufacturers are all groaning at their excessive losses. China's foreign reserve is fast depleting as it expands to be the worlds center for cheap labor and production. China's foreign reserve is in dollars not Yuan

It is even dumber when you see people say Yuan will outscale the dollar and will be the most traded currency in the world. A lot of our youths spend time watching HipTV. Even the ones working at CBN and the Banks have no clue about how the world economy runs and World Trade works. The world bank is situated in Switzerland, still it operates the US Dollar as the base for its transaction

Nigeria is paying back her yuan loan in dollars, see how smart China is, which means even if the Yuan losses value, it is at the detriment of Nigeria. I have seen quite a lot of person wake up and dream that prices of goods and commodities will become cheaper with a malicious way of converting the Yuan to Naira. Let me give you a lame man counter to how people talk about the Yuan.
"Are you saying I could walk to a Nigerian bank or Bureau de Change get the Yuan, fly to China and convert to dollars, fly back to Nigeria and recycle in the parallel market for gains".

Don't get me wrong I am not saying the Nigeria-China swap deal is not good. But the impact is not as purposeful as it is being projected

It is jst sad that with all our intellects, d common man is still in d dark.....