₦airaland Forum

Weda you accept or not, I don use part of this your post open thread. I am not begging you for permission, na courtesy I just say make I tell you. https://www.nairaland.com/3048041/one-orijin-person-came-up#44688834

olatade:
Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have certificate but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

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.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

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.

hok4u:
China is using Nigeria as part of their plan to dethrone USA as world power, the US won't be happy with this development.

To live, a man must die somehow. The fear of the white house will not take us an inch further.

Stylz69:
My thoughts exactly. Ask Gaddafi...oh...they killed him.

Gaddafi was killed with local politics. It may not work for them here so easily. If only Bubu will change his tyranny, regional and sentimental system of governance.





@ topic: this is the ever first intelligent move by this government. I must say I am proud of this move.

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/

well said.it should be a stop-gap measure. My problem is that we have lazy leaders n docile followership.we started fuel importation to plug de gap in supply while they fix the refineries,but fuel importation is now our major and the refineries abandoned .Our prosperity still depends on boosting of local manufacturing ability.

The naira would fall to the yuan soonest. this would be primarily due to demand for the chinese yuan. a wise investment is to buy the Yuan in large quantities and then wait for the fall.

ok

Keneking:
I hope PDP governors would not convert their dollars at home to Yuan abi yawn. That would put pressure and exchange rate would climb to 50+Yuan/NGN1.

Those leaders have "damages" the economy with dollar business.

english hard o..llollls..

amtaken:
Why this so much fuss about the RMB? Even the Chinese in China don't like to use it; they prefer to use U.S.A. dollars.


Who caused the forex crises in the first place if not Buhari himself with his harsh economic policies?

Now he promised to fix it by flooding Nigerian banks with RMB and folks are here clapping for him.


Is China the only country we import from? What about those who wanna import from Dubai, Turkey, UK, USA, can they import with RMB too?

What of the students in other foreign countries? Are they also to pay their school fees with RMB?

When this new policy fails him now he will tell us how it was GEJ's policy in the 1st place.


Why is the Government trying to make this look like a big achievement?


Is this a distraction tactics to make us forget about major issues at hand like:
No power supply ;
Forex crises;
No fuel;
No jobs;
Outright denial of election promises and non-fulfilment of same;
No respect for rule of law etc?

GOD SAVE NIGERIA.

yuan will put pressure on dollars thereby making it lose its power. Simple common sense.

If you only eat EBA and EBA became to expensive, suddenly ssomeome introduced you to apku and you started eating akpu, the pressure will be on eba and become less expensive as there is other alternative now.

MetaHuman:
yuan will put pressure on dollars thereby making it lose its power. Simple common sense.

If you only eat EBA and EBA became to expensive, suddenly ssomeome introduced you to apku and you started eating akpu, the pressure will be on eba and become less expensive as there is other alternative now.

if your analysis is anything to go by. The dollar is in trouble. Although, it may take time for that to happen. fewers countries depend on Yuan.

Etfash:
Good one there. This agreement can be a win-win if the current administration formulates policies that would ease the importation of raw materials and make importation of finished products 99.98% impossible.

Outcomes: Reduction in the importation of finished products; surge in local production, labour and sales activities; stronger Naira; economic independence achievable etc.

i am so tired of you guys using these tired argument, we cannot manufacture with 3000 mgw of electricity, we should stop deluding ourselves, instead we work on our strengths like exportation of raw product, the cost of manufacturing is four times the cost of the finished product exported from china, if we are to manufacture it is to beat the Chinese price, if not, its tantamount of reinventing the wheel, boost agriculture, solid minerals and commodities.. we dont want to revisit the Ajakuta experience where we were locked in a continual loop for decades.

Clone2020:
I don't trust the Chinese.

u know wetin dey!

Keneking:
I hope PDP governors would not convert their dollars at home to Yuan abi yawn. That would put pressure and exchange rate would climb to 50+Yuan/NGN1.

Those leaders have damages the economy with dollar business.

wot about APC govs n Amaechi

asodane:
One reasonable things this government has done so far. Now phones will be cheaper thank God abeg who can help me convert 500 dollar to yaun.

4 yuan to 1dollar.if u interested inbox me enapo49@yahoo.com

Denn:
wrong.

you have forgotten that once the demand for the USD goes down, it would not sell for 320 again.

In fact, i predict that the naira will appreciate against the USD in the next 48 hours...

watch this space

you re wrong my bro.with this new policy,banks wud round trip, businessmen like dangote wud buy enuf yuan to convert to dollar.Result is DAT there wud b an intense demand for dollars.dollar might even sky rocket to N1000

Injoo and infinix freaks can now pay for their phones in yuan. Sounds like Joan.

Whether America is happy with this currency deal b/w Nig/china or not, is not the issue. The point is a nation is trying to get a bearing as a temporary solution to a problem.Competition b/w nations is a constant.If china goes into a win-win deal with another nation to have a competative edge against america, then, no rule is broken.

The Chinese are giving us a loan and are giving us the loan in RMB simple because they want us to put the money back into their system by importing from their country.

RMB is used only in China and flooding our economy with it won't make any difference because China is not the only place people import from and most of the Nigerian students in foreign schools are not in China.

Let's wait and see how the unpopular RMB will influence dollar fall.

MetaHuman:
yuan will put pressure on dollars thereby making it lose its power. Simple common sense.

If you only eat EBA and EBA became to expensive, suddenly ssomeome introduced you to apku and you started eating akpu, the pressure will be on eba and become less expensive as there is other alternative now.

i foresee the prices of phones dropping... do u feel the same way?

udumosam23:
The problem has always been to source out dollar at CBN rate hence the crises. my aim is to cut short conners to get to dollars at cheaper rate.

I import laptops, iPads tablets and phones. so china stores will be of little or no help to what I need.

yeah dats true anyway

kaeforum:
Injoo and infinix freaks can now pay for their phones in yuan. Sounds like Joan.

wats the Yuan amount for infinix hot note pro.

cyberguy72:
you re wrong my bro.with this new policy,banks wud round trip, businessmen like dangote wud buy enuf yuan to convert to dollar.Result is DAT there wud b an intense demand for dollars.dollar might even sky rocket to N1000

Your point has no economic basis.

First, the demand for yuan will increase whilst the demand for USD will decrease.

This will lead to an increase in the price of yuan in the short term and cause a rapid decline in the price of USD. I expect speculative holders of the USD to sell off in the coming weeks.

In the mid term, the demand for USD would have eased to the point that the difference in price (parallel vs official) would have reduced to manageable levels.

Do not forget that around 70% of business demand for the USD is actually for fund routings to China. If we take at least 50% of the economic USD demand away, we would have a manageable USD FXR.

It would make sense if banks now allow us to open domiciliary accounts in yuan and allow yuan denominated MasterCard with unlimited transaction abilities. It would make more sense if businesses can easily apply for forex and open LCs in Yuan.

This is the first great thing this government has done.

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.

Emancipate yourself from mental slavery..

Everything is possible to him who believes..

hok4u:
China is using Nigeria as part of their plan to dethrone USA as world power, the US won't be happy with this development.

That was why they hated GEJ. He was an ally of china.

But the west can never lend Africa a helping hand in developmemt like china would do.

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/

THIS IS A WELCOME DEVELOPMENT..
GOD BLESS NIGERIA

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.

bros e no dey possible o,but if it is thenna sound waytomake dollars be dat.
mek I follow consult my dibia.

brightology3:
wats the Yuan amount for infinix hot note pro.

about 1,066 yuan. very cheap indeed.

kaeforum:
about 1,066 yuan. very cheap indeed.

what's the naira equivalent.
modified. ve gotten it 30.656 naira

On the China-Nigeria Yuan deal, Adétòmíwá Adétòmíwà Writes

Lol! See my people, see jubilation over China-Nigeria deal. Nigerians are jubilating over $2b loan from China and the so called Yuan trading deal. It is not unusual for people to jubilate over food that will hurt their stomach, but it is unfortunate to see medical doctors celebrating agbo jedi.
China want to borrow us 2 billion dollars, but they want to give us in Yuan and not the dollar itself.

They are not handling us cash, but service exchange; meaning if we want to buy iron rod, we buy it from Chinese company and they pay the company on our behalf. If we want to construct railway, they will construct it for us and take the money out of the loan. In the end, we are bound to award contracts to them, cutting out competition from others and fairplay to others(non Chinese company can't bid or compete to reduce the cost.) They get to value the contract and determine the price, meaning they can sell something worth 200 Naira for N2000 and we don't have a choice 'cos it is on credit.

The worst of it is that China want us to pay back in dollars, that is not all, we are moving our foreign reserve to fake currency(Yuan) a currency that is manipulated openly by the Chinese government. Did anyone ask Lamido Sanusi what happened to some of our reserve he moved to Yuan few years ago? They sold us Yuan at 4 to a dollar, only to devalue their currency few weeks latter to 9 Yuan per $.

Many Nigerians don't know that even Chinese company don't want yuan, nobody want it, Chinese foreign reserve is in dollars, China is the largest holder of US bond, they want dollars by all means.

Also, China have more lobbyists in Washington DC than any other nations on earth, begging Washington politicians to always make policy in their favour, how can such country save us from USD?

Has anyone asked why China hasn't built any refinery in Nigeria?? They have the money, they want the profit, but never did it.

If China does anything against Washington interest in Nigeria, USA have too much political power over China, they will just tell them not to do it. China will continue to inflate the contract price, refuse to complete the project and deceive us further.
I don't blame Chinese leaders for trying to scam us, I blame our leaders for not being smart enough. What do you expect when you have political hacks negotiating on behalf of Nigeria against smart professionals from China.

I was thinking Nigeria political leaders will do research about Chinese lobbyists in Washington and understand the interest they are protecting before believing in Chinese version of Trojan horse.
We are the only one that can help ourselves, let's implement true federalism system and free market. Development is a culture and not a product, we can't buy it no matter how much money we have or borrow.

As soon as Buhari end ehin term we will switch back to US dollars. Chinese are thieves! Don't trust dis some eyed people dem get sense die.. They are using Buhari cuz Na dummy

Don't trust Chinese people!!

JessNigeria:
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.


Sound point!

Bro you too you're on points but remembered short term measures are needed to achieved long term goals.

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