₦airaland Forum

1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars

2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.

3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar

4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.

5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira

6. Nigeria imports almost all it needs from the West, Middle East and Asia.

7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.

8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”

9. FXR means foreign exchange reserves

10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...

11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..

12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.

13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.

14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.

17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.

18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.

19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming

20. Naming oil, refining and mining..

21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

[b]U.S Market Panics Over Potential Dollar Crash As Buhari Signs Currency Deal With China[/b]In a bid to bridge the widening gap between the Naira and the Dollar in the Exchange rate market, President Muhammadu Buhari, on Tuesday, April, 12, shocked foreign investors mainly from the United States who have been accused of stockpiling their money in dollars.




The President had consistently insisted that he would not devalue the naira against the dollar despite pressure from the International Monetary Fund, IMF and the United States.




With the West insisting that the nation’s currency must be devalued, which has always been part of their conditions for assistance, the East (China) has offered to rejuvenate the nation’s economy by investing in capital projects across the country.




During talks, China and Nigeria agreed to strengthen military and civil service exchanges as part of a larger capacity building engagement.




In line with this, China offered to raise it’s scholarship awards to Nigerian students from about 100 to 700 annually, while 1,000 other Nigerians would be given vocational and technical training by China annually.




According to the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the Chinese President, Xi Jinping also offered $15 million agricultural assistance to Nigeria for the establishment of 50 demonstration farms across the country.




The offer was in response to Buhari’s vow to make Nigeria self-sufficient in food production.




During Buhari’s visit to Beijing, the Industrial and Commercial Bank of China Limited, the world’s biggest lender, and the Central Bank of Nigeria signed a Currency swap deal on yuan transactions.




The implication according to the Director-General, African Affairs Department, China’s Foreign Ministry, Lin Songtian, is that “Renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria,”




The Minister of Finance, Mrs. Kemi Adeosun, had said last week that Nigeria was looking at panda bonds or yuan-denominated bonds sold by overseas entities on the mainland, which she noted would be cheaper than the dollar and the Eurobonds.




An economic expert and Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, noted that the currency swap agreement will allow Nigerian banks to issue Letters of Credit in renminbi (yuan) in place of the dollar or euro.




“It will facilitate trade deals between Nigeria and China. The ongoing foreign exchange scarcity has been affecting the amount of Nigeria’s import from China.




“The new deal may ease pressure on the dollar, since demand for yuan/renminbi will start rising,” Chukwu said.




So far, most financial analysts have applauded Buhari for the trade agreement with China; on the other hand, China has also expressed interest in setting up major projects in Nigeria such as refineries, power plants, mining companies, textile manufacturing, and food processing industries as soon as the enabling environment is provided by the Federal Government.




Economic pundits have likened this agreement to his 1984 military regime policy when he directed the Apex Bank to cause a change in the colours of the Nigerian currency.




The exercise was designed to render the money alleged to have been stolen by Nigerian political leaders useless in their hands.

In a bid not to devalue, Buhari according to experts is seeking for a way to weaken the dollar dominated currency by approving Yaun to be one of the nation’s major foreign exchange currencies

jumas:
instead of French language taught in our primary and secondary schools I think the government should redirect it's focus on Chinese language for better business deals.
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let me go change my money to yuan before my dollars become useless