The disadvantage associated with this policy I see it overweight the adv as the country is trying to make her self a producing country is not feasible any time soon.

Capitals are not readily available (equity) for entrepreneur engulfed with ideas in Nigeria to produce because those that have sapped enough of fund from and outside our political system lack the idea to setup a viable productive system to increase our economic key indicators. Trying to invest with that fund will be importation as it is associated with low risk, then what happens when the total cost of importation from China is reduced than producing locally?

In analysing govt policies, the long a and short term cost and benefit should be considered.

policies that will discourage importation, making fund available for the common man at a low interest rate and adequate loan security system attached will make this move a perfect one.

We should seize this opportunity to import capital goods that will boost our local manufacturing, instead of looseguarding and getting overwhelmed by finished chinese goods.

I'll commend the president on this development but still makes us dependent solely on imports...

Wao Buhari and his team are working while people like Fayose, Ben Bruce, barcanista mocks. This is good news particularly for business people from the SE despite their hate for Buhari and their opposition the government is still working for their interest. God bless Buhar and his team, God bless APC a party with vision, God bless Nigeria.

sinistermind:
I'll commend the president on this development but still makes us dependent solely on imports...

Before now we have been importing, beside Buhari has said in China tha he doesn't want Nigeria to be a dumping ground for China products.

maxxy:
The news that Nigeria has signed a currency deal with China allowing the free flow of the Chinese Yuan amongst Nigerian banks (https://www.thecable.ng/nigeria-china-sign-deal-on-free-flow-of-Yuan) is arguably one of the best (or worst?) policies so far of the Buhari Administration.

Banks would now be able to settle payments directly from Naira to Yuan, rather than from Naira to black market Dollar and then to Yuan. In fact, an extension of this is that debit and credit cards can now be issued and denominated in Yuan. A sizeable portion of the local Dollar demand is thus eliminated, reducing the pressure on our Dollar reserves.

To boost our Yuan liquidity, the Chinese loans being negotiated by the Federal Govt may be availed partly or wholly in Yuan. This will greatly boost Nigeria’s Central Bank and commercial banks’ Yuan liquidity. In fact, the Nigerian and Chinese Govts are reported to have entered into a framework arrangement for currency swaps as a means of providing the much needed liquidity.

At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.

PROS

This policy will lead to a reduced demand for Dollars and easing off of pressure on our Dollar reserves, as a large portion of Nigeria’s import needs are served by China (China is Nigeria’s largest trading partner – http://www.premiumtimesng.com/business/business-interviews/188666-china-tops-u-s-as-nigerias-biggest-trade-partner.html). Deals such as Dangote’s purchase of 3400 trucks (http://venturesafrica.com/dangote-group-signs-deal-for-3400-trucks-supply/) will henceforth be settled in Yuan rather than scarce Dollar reserves, which would then be sufficient to service other legitimate investor demands such as portfolio investments, capital repatriation, etc.

This policy also implies cheaper imports from China as importers from China would import at the equivalent of the current official rate of N199/$1 as against the current parallel market rate of N320/$1.

CONS

This policy may keep Nigeria as an importation-dependent economy. Due to its deliberate policies towards boosting its economics of scale, China produces most goods at a comparative advantage. While we have decried the importation of toothpicks and the likes from China, we must bear in mind that we import toothpicks not because we do not have bamboo and other raw materials in Nigeria, but because China is able to bring these goods to the Nigerian market at a much cheaper price than the one produced right here in Nigeria. The reasons are not far-fetched; the availability of infrastructure, cheap labour and use of manufacturing clusters. This policy would therefore sound a death-knell to the resurgent local production of importation substitutes.

Again, this policy would only bear the projected fruits if and only if the Nigerian factor doesn’t come into play. As demand for Yuan surges, a parallel market for Yuan may soon be created, bringing us back to this same point many years after.

WHITHER NIGERIA?

This policy should not be viewed as a solution to Nigeria’s Dollar dependency as we may otherwise inadvertently create a Yuan dependency. At the very best, this policy should be a stop-gap, a short-term measure devised to keep things in place while we sort out our infrastructural and policy challenges. The future prosperity of Nigeria lies in production for local consumption and export, and not the consumption of foreign imports.

Maxwell Asowata, Legal Practitioner and Business Consultant, writes from Lagos, Nigeria.

Source - http://ecstasyhouseng.com/index.php/2016/04/13/free-flow-of-yuan-in-nigerian-banks-what-you-need-to-know/

local this n local that..yet no stable power n basic amenities..
Good move to me,it is only wise to buy direct without going through forex hurdles.
Virtually every country buys from China n quality control depends on us.
Good one Mr President.
Time to control the pest.

If this new policy fails Buhari will tell Nigerians how it emanated from GEJ. Watch out!

This Naira_Yuan policy should not be an all comers affairs it should be purely for the importation of essential raw materials and machineries for project developments and not for importation tooth picks and the likes or else the few remaining functioning industries now will all go to sleep there by causing more unemployment to the already battered unemployment situation in the country. Let the policy makers look before they leap because an average Nigerian so called business men and women are only concerned about themselves alone not minding the consequence of their actions to the economic wellbeing of the nation.

FROM MR LEE CHINA, During Buhari’s visit to Beijing, the Industrial and Commercial Bank of China Ltd (ICBC) , the world’s biggest lender, and Nigeria’s central bank signed a deal on yuan transactions.

“It means that the renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria,” Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters.

The agreement was reached following a meeting between Buhari and Chinese President Xi Jinping.

this is to inform all nigerian customer , they can pay us in chinese currency in rmb in future and they can do direct bank tt of rmb from their nigerian bank to our hong kong hsbc bank through their domicilary banks .

note - our website price is in dollar and you can exchange dollar to rmb yourself always 1 $ - 6.5 rmb . please i repeat you can pay us either in dollar or in rmb through bank tt direct transfer from nigerian bank to our hsbc bank and our hsbc bank detail you can check in our website and more details about bank tt and availability of chinese rmb you can ask direct to your bank in next coming week .

But you trust the Americans who have been making all efforts to get Nigeria to legitimize homosexuality.

Clone2020:
I don't trust the Chinese.

successismine:
2day is my birthday......show love

*kissing ur wet lips slowly*
.
Happy birthday dear... I love u

Jidibia:

That's 207naira to 1dollar

Unfortunately, we dont have Yuan denominated acct, so you are heading to black market, so use black markt permutations.

udumosam23:
At current rates of 30.74 Naira to the Yuan, and 6.74RMB (Yuan) to the Dollar, Nigeria would be able to fund its importation at the equivalent of the current official rate of N199/$1.


wait o, am I missing something here, like guys have been converting their nairas to yuan, then buy from US or UK at lesser rate with Chinese yuan o.

And I dey here dey wait make dollar come down b4 I reassume importation. chai, I dull, I dull.

wey my chrome book, ( starts browsing on how to convert my naira to yuan and then to dollar ). Thunder fire devil.

don't you think if one can source dollars at the official rate of 199 naira to a dollar and now convert it to yuan at 6.74 RMD(Yuan) to purchase either raw material of finished goods will be more profitable comparing 30.74 naira to Yuan.

focus7:
Before now we have been importing, beside Buhari has said in China tha he doesn't want Nigeria to be a dumping ground for China products.

Na so, it was before and this agreement only allows them to bring in more...

hurricaneChris:
Very simple!

Convert your naira to yaun at normal rates, convert your yaun to dollars at normal rates again. Then recycle the dollars back into naira at N320.

Some people's calls have been picked by by this miscalculation.

They will never allow you to convert yuan to dollar straight off. This way u can't make any nonsense profit.

i think the over demand of yuan, may still increase the rate of ngn/rmb

What about if you want to buy from china's store directly ( allibaba, alliexpress etc)? Will you need to convert naira to yuan and then to Dollar. Or it will be naira to yuan only?

uduak2016:
Somebody is trying to piss America off by abandoning the Dollar for other currency...no nation has tried it and was successful at it especially in Africa.

My thought exactly cuz to me, is like d chinnese want to phuck d americans using Nigeria as weapon nd shield!...
bt we shudnt depend on d yuan too cuz it might Later cum back to hurt us like d u.s dollar.. FG try small

I was going to buy a phone this weekend but na to wait till month end sure pass now. Let me see how things would go.

eDeity:

America should go to hell !!!!!!!

Stylz69:

My thoughts exactly. Ask Gaddafi...oh...they killed him.

eDeity:

America should go to hell !!!!!!!

Its not abandoning dollar to Yuan but adding it to FXR. This will only REDUCE DEPENDENCY on dollar for all transactions abroad.

focus7:
Wao Buhari and his team are working while people like Fayose, Ben Bruce, barcanista mocks. This is good news particularly for business people from the SE despite their hate for Buhari and their opposition the government is still working for their interest. God bless Buhar and his team, God bless APC a party with vision, God bless Nigeria.

Oga shut up your stinky mouth there and don't derail this thread. better back of if you don't ve any meaning contribution.

herbie27:
She won't go to hell because your country is in lots of international organisations and their levys are paid in US DOLLAR, China itself buy things frm US in Dollars and if ur government like it shld change her currency to yuan it will still buy things frm US and pay in dollars(comparative cost advantage), he shld invest in exportation.

.
I dont mean tips of hell fire where the like of late Nigrian politians are but the hottest part of abyss, there they can rot there for all i care, if they chose to piss themselves off for our progress!

Okay so they need to conduct awareness to encourage people to buy Nigerian and encourage Nigerian manufacturing. Because I can see people on this thread already planning on hitting Aliexpress (which sells finished goods). Please be patriotic and buy what cannot be produced in Nigeria only. Or you will come here and wail again in a few years' time.

uduak2016:
Somebody is trying to piss America off by abandoning the Dollar for other currency...no nation has tried it and was successful at it especially in Africa.

Well, we now have one in Nigeria and in all assessments, in Africa, Nigeria is very fit to pull this through.

ogunsinamayowa:
What about if you want to buy from china's store directly ( allibaba, alliexpress etc)? Will you need to convert naira to yuan and then to Dollar. Or it will be naira to yuan only?

yes, you need to convert it to Yuan only,then make your transactions.

brightology3:
Oga shut up your stinky mouth there and don't derail this thread. better back of if you don't ve any meaning contribution.

See they are here, children of hate, by their fruits you know them, hate runs in their vein. Whatever, Buhari is working and he will succeed and Nigeria will become great again, the glory of our country shall be restored by God's grace.

amtaken:
Why this so much fuss about the RMB? Even the Chinese in

GOD SAVE NIGERIA.

****even if buhari turns 1$ to 1naira today some of you will still wail,****

The next step to take is to saddle the concern agencies to give guide line on what should be imported to the country and what out not to be imported give preference to only those that will aid Nigeria infrastructural development in the shortest possible time and penalties for any one that falters in any way.

The only instrument to checkmate the greed of Nigeria's elite is technological development,sooner than later the will be ridiculed with there loots be it a senator ,Governor or President.

Long live Nigeria ,Long live PMB

neocortex:


I think there may be impediment to converting Naira to yuan at the official rate.
Black market rate may become the norm.

please can you elaborate on this.

Highvotage:


Its not abandoning dollar to Yuan but adding it to FXR. This will only REDUCE DEPENDENCY on dollar for all transactions abroad.

.
Bleep you!!! Wait and see how we roll, the fall of America is at sight

brightology3:
yes, you need to convert it to Yuan only,then make your transactions.

Thanks...