This is very good development and i give PMB kudos on this, Most of our goods are shipped from China, This will help importers more mostly those that buy from China as there will no need of buying dollars and later changing to yuan.. Kudos we are on the right track.

Aufbauh:
And some people still feel that they don't see the essence of Buhari's travelling.
Ride on joor Mr President!
Those who are calling him derogatory names thinking he will fail we surely eat their words and be disappointed in the end.

Travelling and begging for money is ok but making the economy healthy and Nigerians smiling to get a plate of food is another thing. They are not the same.

Pls can I get something clear here. So with this visit, Nigerians can visit China with Naira and do their transaction?

Trendy247:
AND BY THIS TIME NEXT YEAR, 1 YUAN WILL EQUAL N1,000... I TRUST THE DULLARD.. BY DAT TIME NA EGYPT HIM GO RUN GO

my broda.... Buhari has finished Nigerian/Chinese business men. They will regulate yuan rate as they like... Only God ll help us.

djcombo:
I am still not too clear on how this would help,

but knowing fully well that our economy is import dependent and we export oil majorly, tieing up such Trade agreement with China isn't too bad.

Most raw materials for major industries can be gotten from China, like wise China would likewise purchase crude oil exports from Nigeria. Knowing fully well that the devalued USD is a function of some strong market forces/cabal.

Trading in Yuan (if readily available should help put in check increasing demand for USD which makes the street USD-NGN rate highly volatile and unpredictable)...

In the long run, USD demand to import goods from China would fizzle out as Yuan would now be used to directly purchase such goods, reducing the pressure on USD within the country

This no doubt is a good move, but we should see this as a temporal measure to reduce pressure on the demand for dollar in the market. If we do not strategize on our fiscal policies, we might find ourselves in the same position as we did with the dollar as preffered currency.
Read the comments of nairalanders on this topic. All i see is a desperate move to find a quick substitute for the dollar fx in other to enable us meet up with the import demand of our economy. These will no way help our economy. The US-China relationship is a model we should try to adopt. The chinese are bring something to the table, so also is the US. The president made a frank and insightful comment at the negative imbalance in the trade relationship between the two countries. China 80%-Nigeria 20% is just too abysmal.

Personally, i would say the chinese are having trade dealings with us just because we have a sizeable foreign reserve which is dominated in dollars which in itself is a measure of economic assurance.
If we get our acts right, we can use this agreement as a tool to reduce the pressure on our foreign reserve, but then its not a long term solution. The long term solution is to get the chines to invest heavily in our economy by transferring technology and expertise to us or better still we steal from them since they do that very well too.

I have been a critique of the President's many foreign trips, but i think this trip to China is a good one from the nature of deals sealed so far. I hope all these deals are implemented.

malton:




It won't put us into perpetual slavery any more than the US dollar has.

Besides, this is a win-win.

China is making efforts to popularise the Yuan, while for Nigeria, it provides an opportunity to shore up foreign reserves and provides a trading window.

The dollar as world's reserve currency benefits the American Economy the most as it allows them access to cheap credit and a high percentage of government debt from the world's trust in its currency.


If for none other, we should be thankful that Mr president traveled this one time!

Pavore9:


I still live in Nairobi and many Nigerians here have issues getting money from Nigeria as most of the cards don't even work! We resort to who needs money in Nigeria and gets shillings in return. Someone had to pay N41,000 into a Nigerian bank account for another Nigerian here to give him 13,000 shillings whereas one should have withdrawn nothing less than 20,500ksh if the cards were working as it should!

Sir if I may ask which of the bank's atm cards do you use?

NaijaTalkTown:
So now you believe in Buhari? So you will stop calling people who were able to think ahead of you hypocrites? So you will stop calling Buhari a hypocrite and the President of the North? So you will start reasoning objectively and stop ccrying foul play and screaming national confab? So do you now realize the Igbos shot themselves politically and as so will have to pay the prize? Do you now understand that the person you and your people refer to as a dullard has performed more than any elected President of Nigeria in less than one year?

it doesn't mean that the confab reports should be thrown away after all nigerians agreed on it.
Or are nigerians suddenly against the confab they sat for and agreed upon.
Naijatalk! naijatalk!! naijatalk!!!
Stop masturbating on my posts.
If i feel that pmb is right about certain things i will give him credit.
Am not a hater.

jamsboy:
Wailers are not happy with this news

I am a proud wailer and this is one of the moves I have been wailing about ( he should shun the west and US and look towards a more friendly East). And now I'm happy Nigeria my country is making progress. ...FYI I'm the OP too...

dumo1:

Sir if I may ask which of the bank's atm cards do you use?

Fidelity Mastercard.

JayJustus:




zimbabwe never changed their official currency to yuan...it was only just used as one of the legal tenders...the major currency in zimbabwe is still the US dollar and rand

Dude, I used to a have Zimbabwean roomie, he said they use both yuan and dollars as their currency.
This is how they started

If u dont know wot 2 say keep quiet....how is it slavery?

OrIandoOwoh:
Yuan?? No more dollar?? Buhari shouldn't sign us into perpetual slavery o..

said it before this'll reduce our over reliance in dollars, since we import mostly from china and india it is better we had the rupee to our forex too
kudos to PMB

Pavore9:
Fidelity Mastercard.

Have you tried using the GTB Mastercard?

I am concerned about a few things in this development. The premise is that China is US main competitor in term of global economy. If we consider our external trade between both countries, at present, in general we are benefiting most from the US as compared with China. Nigerian exports more to US and imports more from China. In other words, we get more money (dollars) from US and spends more on China. Naturally, any sensible government would want ally with those that contribute more to its growth. Even in small business, your source of income (the customers; people you sell to) is your lifeline, you do not want to mess with it.

What is our trade balance with China? They have undue advantage over Nigeria. Consider that Nigeria has huge negative trade balance with China and this policy is going to make it worst because Nigeria is going to spend more on Chinese consumable goods. On the contrary Nigeria has positive trade balance with the US, which is a good thing for the economy.

Another area we should look at is Foreign Aid. How much have China contributed to Nigeria terms of foreign aid? Same can not be said of US which have assisted Nigeria through agencies like USAID etc. US have contributed in training of Nigeria military, the health sector, education, and infrastructural development.

Lets also remember that Nigeria has more foreign investments from US companies than China. How many Chinese firms have portfolios in Nigeria stock market; nil. If US investors begin to experience pressure from home authorities to cut ties with Nigeria, the stock market and by extension the companies in Nigeria would feel the heat.

What Nigeria can not do is to rob Peter to pay Paul. Nigeria can not collect from the US with the right hand and hand same over to China with the left hand. It certainly will backfire along the line because China is number one US competitor. The macroeconomics of this new development is concerning. From the comments here, it is obvious that people are taking a stand based on the short term microeconomics gains. I read where someone is applauding the policy because he would be buying China phones of #30,000 for 19000 using Yen instead of Dollars, and I ask; which country has ever made progress by becoming a dumping ground for consumable goods? Of course that is what it boils down to with this quick fix policy.

dannybrown19:

Dude, I used to a have Zimbabwean roomie, he said they use both yuan and dollars as their currency.
This is how they started

well i happen to live with a zimbabwean at the moment...it is not a legal tender for everyday buying and selling but you can source it for invisible transactions...

We need more from the East. You'd be amazed at how much we do business with other big players including Japan, India and even Indonesia (for textile importers). The high dollar exchange rate is encouraging investors to underinvest

JayJustus:


well i happen to live with a zimbabwean at the moment...it is not a legal tender for everyday buying and selling but you can source it for invisible transactions...

free the guy bro.. Yuan isn't a legal tender for Zimbabwe yet but they won't agree

dannybrown19:

Dude, I used to a have Zimbabwean roomie, he said they use both yuan and dollars as their currency.
This is how they started

nahhhh... Zimbabwean uses only us dollars for their daily activities....

engrchykae:
it doesn't mean that the confab reports should be thrown away after all nigerians agreed on it.
Or are nigerians suddenly against the confab they sat for and agreed upon.
Naijatalk! naijatalk!! naijatalk!!!
Stop masturbating on my posts.
If i feel that pmb is right about certain things i will give him credit.
Am not a hater.

Lol you are really an e-diot. When did all Nigerians ever sat down to agree to a confab led by politicians whose only interest was their pocket? Most of them were pictured sleeping, others flexing and you want that useless report to be enacted? How can such a confab be enacted when corruption is still residing deep in the heart of our nation? How do you expect the Buhari administration to enforce a policy they did not draw or planned for? You don't know anything about governance, politics and geopolitics. You are also shortsighted and logically illogical. You are not intelligent and as so, you would rather insult and make noise than argue logically and objectively. You are a waste to Nigeria and almost a waste to mankind. #Gowandie

NaijaTalkTown:
Lol you are really an e-diot. When did all Nigerians ever sat down to agree to a confab led by politicians whose only interest was their pocket? Most of them were pictured sleeping, others flexing and you want that useless report to be enacted? How can such a confab be enacted when corruption is still residing deep in the heart of our nation? How do you expect the Buhari administration to enforce a policy they did not draw or planned for? You don't know anything about governance, politics and geopolitics. You are also shortsighted and logically illogical. You are not intelligent and as so, you would rather insult and make noise than argue logically and objectively. You are a waste to Nigeria and almost a waste to mankind. #Gowandie

thank you very much.

sonnie10:
I am concerned about a few things in this development. The premise is that China is US main competitor in term of global economy. If we consider our external trade between both countries, at present, in general we are benefiting most from the US as compared with China. Nigerian exports more to US and imports more from China. In other words, we get more money (dollars) from US and spends more on China. Naturally, any sensible government would want ally with those that contribute more to its growth. Even in small business, your source of income (the customers; people you sell to) is your lifeline, you do not want to mess with it.

What is our trade balance with China? They have undue advantage over Nigeria. Consider that Nigeria has huge negative trade balance with China and this policy is going to make it worst because Nigeria is going to spend more on Chinese consumable goods. On the contrary Nigeria has positive trade balance with the US, which is a good thing for the economy.

Another area we should look at is Foreign Aid. How much have China contributed to Nigeria terms of foreign aid? Same can not be said of US which have assisted Nigeria through agencies like USAID etc. US have contributed in training of Nigeria military, the health sector, education, and infrastructural development.

Lets also remember that Nigeria has more foreign investments from US companies than China. How many Chinese firms have portfolios in Nigeria stock market; nil. If US investors begin to experience pressure from home authorities to cut ties with Nigeria, the stock market and by extension the companies in Nigeria would feel the heat.

What Nigeria can not do is to rob Peter to pay Paul. Nigeria can not collect from the US with the right hand and hand same over to China with the left hand. It certainly will backfire along the line because China is number one US competitor. The macroeconomics of this new development is concerning. From the comments here, it is obvious that people are taking a stand based on the short term microeconomics gains. I read where someone is applauding the policy because he would be buying China phones of #30,000 for 19000 using Yen instead of Dollars, and I ask; which country has ever made progress by becoming a dumping ground for consumable goods? Of course that is what it boils down to with this quick fix policy.

You raise a valid point. But according to the president, the loans are less stringent compared to what you would get from the west. At the moment, we need to invest heavily in our public infrastructure. The only country that will give out cheaper loans is china. There are several angles to this loan. If we pay too much attention to yuan-naira-dollar angle, we will not get achieve much. The chinese are a global force to reckon with when it comes to infrastructural investment. For a third world country like ours, it will cost less to get the chinese to build infrastructures for us than going west. We just need to play our cards right and we would do well with the loan.

Good move.Decrease in demand for dollar will drive the exchange rate downwards. Naira exchanges for Yuan at a lesser rate than dollar which means you can import more with the same amount of Naira.It's a win win.PMB seems to have a good agenda after all

But what would be d interest rate and the exchange rate implication dats what will determine what d future holds for nigeria.care should be d watchword

redcap:


This is pipe dream,you'll have to source ur RMB outside the bank and deposit to ur rmb dom. Account.have you bothered to check the black market rate,because the last time I checked,every currency traded in the black market will always appreciate whenever$ goes up.

lol I don't use dorm to buy stuffs on line but my naira mastercard linked to my savings account.

sonnie10:
I am concerned about a few things in this development. The premise is that China is US main competitor in term of global economy. If we consider our external trade between both countries, at present, in general we are benefiting most from the US as compared with China. Nigerian exports more to US and imports more from China. In other words, we get more money (dollars) from US and spends more on China. Naturally, any sensible government would want ally with those that contribute more to its growth. Even in small business, your source of income (the customers; people you sell to) is your lifeline, you do not want to mess with it.

What is our trade balance with China? They have undue advantage over Nigeria. Consider that Nigeria has huge negative trade balance with China and this policy is going to make it worst because Nigeria is going to spend more on Chinese consumable goods. On the contrary Nigeria has positive trade balance with the US, which is a good thing for the economy.

Another area we should look at is Foreign Aid. How much have China contributed to Nigeria terms of foreign aid? Same can not be said of US which have assisted Nigeria through agencies like USAID etc. US have contributed in training of Nigeria military, the health sector, education, and infrastructural development.

Lets also remember that Nigeria has more foreign investments from US companies than China. How many Chinese firms have portfolios in Nigeria stock market; nil. If US investors begin to experience pressure from home authorities to cut ties with Nigeria, the stock market and by extension the companies in Nigeria would feel the heat.

What Nigeria can not do is to rob Peter to pay Paul. Nigeria can not collect from the US with the right hand and hand same over to China with the left hand. It certainly will backfire along the line because China is number one US competitor. The macroeconomics of this new development is concerning. From the comments here, it is obvious that people are taking a stand based on the short term microeconomics gains. I read where someone is applauding the policy because he would be buying China phones of #30,000 for 19000 using Yen instead of Dollars, and I ask; which country has ever made progress by becoming a dumping ground for consumable goods? Of course that is what it boils down to with this quick fix policy.

The moment I heard buhari was increasing the yuan in our reserves I was filled with dread.
Many, even economists dont know that we already have it in our reserves...
So here's my question-
If we now do business with china using their currency, how do they pay for our oil exports?
In the current glut, it's a buyer's market. Without needing to use ur their dollars on our crude, their currency gets stronger against the naira, with every shipment they buy from us!
Again, how on earth is this to our benefit? Adding more and more yuan to our reserves?!
Especially since the trade balance is still wholly in their favour...
Anyone?

Lakeland4321:
stop misleading nigerians, no Bank converts your money to dollars through black market on your ATM card. This is a mastercard or visa platform and you will conform with international standards ie official rates. That was why CBN reduced the limit of spending so as to conserve the dollar used to back up nigerian tourist spending abroad.

kindly check the attached picture as example of what happens now for online payments and POS abroad. I made this payment of 55 CAD online a few day ago using VISA Card. I was debited N13,000 instead of the N8,542 or something a little higher if there are other charges.
This is the reality of the situation now. I tried to get in touch with the bank and the excuses I heard was that banks source for forex from the black market for most of these transactions so they set their system to such funny rates.
I have confirmed this with clients from first bank, GTB, Skye etc Everyone has the same story

MetaHuman:
Yes..
Products from China will be cheaper..
E.g redmi 2 costs 699 yuan in China but 120 dollars in the same China.
120 dollars at black market rate in nigeria (320) is about 45k 699 yuan at normal and black market rate (30) is about 25k .. So its good news..

waoh a very good news but I hope they don't have hidden agenda