₦airaland Forum

NgeneUkwenu:
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!

Miss Ngene

Chukzyfcb:
One thing I know is, even economist don't sing the same tune when a music is played.....In a stock market even, stock brokers can only speculate but cannot be 100% certain. The oil energy experts didn't expect a fall of oil price down to $35/barrel jan lastyear......that's how economic news is. Its a master dribbler subject to change.
We can only but speculate but can never be sure.... Likewise is this news, some have speculated its a positive move while the others are pessimistic....at the end, we will see how the theory work will translate in our day-day activities (pratical work).

Chukzyfcb:
One thing I know is, even economist don't sing the same tune when a music is played.....In a stock market even, stock brokers can only speculate but cannot be 100% certain. The oil energy experts didn't expect a fall of oil price down to $35/barrel jan lastyear......that's how economic news is. Its a master dribbler subject to change.
We can only but speculate but can never be sure.... Likewise is this news, some have speculated its a positive move while the others are pessimistic....at the end, we will see how the theory work will translate in our day-day activities (pratical work).

KissCODE:

I dont think most times with my normal sense. Sometimes i think abnormally and right now i am thinking that way.

The blackmail against buhari is tickining per second now because he is abandoning the USA for China.
Look at the that CNN is promoting saying it is from BH nagotiators on Chibok girls. But we know it is all lies to turn the tide against PMB.
PMB should get ready to face the same war GEJ fought. Just that it the USA 4+years and friendship with APC to wage war against GEJ. But in Buhari‘s case they will set him up against every Nigeria.
Forex policy will be changed & soon China will devalue their currency again then Chinese mnufcturers will be reluctant to collect yuan from nigerian importers... Then the buble will burst on the face of this government.

We need to look inward more and find a way of encouraging our local manufcturers. Not collecting loan from any country.

Chukzyfcb:
One thing I know is, even economist don't sing the same tune when a music is played.....In a stock market even, stock brokers can only speculate but cannot be 100% certain. The oil energy experts didn't expect a fall of oil price down to $35/barrel jan lastyear......that's how economic news is. Its a master dribbler subject to change.
We can only but speculate but can never be sure.... Likewise is this news, some have speculated its a positive move while the others are pessimistic....at the end, we will see how the theory work will translate in our day-day activities (pratical work).

CSTR2:
Allowing the Chinese to build is not a bad thing. They are excellent at that, and we are not at their level yet.
The real test is if the FG can identify the most critical infrastructure priority and get full value from China.

Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

989900B:
ROFLMAO: Delete or edit your post.

Pidggin:
Even China have dollar reserves. Is it a mistake that the West and other important countries ignore the Yuan?

aresa:
1. Nigeria is not the west and Nigeria and the west are not facing the same economic struggles..

2. The fact that China accumulates dollars has no bearing on our own economic worries and just to add to that, China can afford to collect dollars as reserves which we should be doing also, but we are incapable of doing that right now since the only avenue is strong export and a very diversified economy which ours is currently not.

3. Since we can are in no position to generate dollars or spend whatever dollar we have at the moment, we must boost our export.

4. Boosting our exports means we must first improve our power supply to make sure our manufacturing factories, industries and the informal sectors down to the air dresser and so on..

5. Boosting since nearly all our manufacturing depends on raw material imports from China, it makes great sense to buy and import via Yuan instead of the dollars.

6. The dollar is too strong to trade with right now and it won't be in our best interest to keep exhausting our meager dollars.

7. Lastly and again, we need to get our acts together first before comparing with other countries with different economic situations and realities. Let's cut our coat according to our size by first growing our local manufacturing and export potentials. This is what generate dollars, not comparisons with other countries like China with strong manufacturing base that translates into dollars regardless.

MrTeCO:
Wait ooo.....I've been seeing stupid stupid comments here from most NairaLanders with most of you all missing the real fact......here I Quote...:

Dangote gets a loan of $2Billion n a whole country like Nigeria gets a loan of $6Billion....hmmm smh

Question...!

1. Does that mean that Dangote's cement plants are far almost close to all the infrastructure the GMB plans for the whole country that its diff with Africa's largest population is just $4Billion ? That's awkward.

2. From what I see here, Buhari's govt is only interested in seeing to the full establishment of Northern supremacy in Nigeria's economy for the President to solicit a loan for Dangote's company alone(I know most of you will call me a tribalist but check well you'll see that most of the embattled budget mainly benefits the North)

3. What exactly is that $6b will do in a country like Nigeria if Dangote's proposed cement plants will gulp $2b....?



Please someone with a Reasonable mindset should answer me.....ohh, let the Bashing begin...am ready for it.

MrTeCO:
Wait ooo.....I've been seeing stupid stupid comments here from most NairaLanders with most of you all missing the real fact......here I Quote...:

Dangote gets a loan of $2Billion n a whole country like Nigeria gets a loan of $6Billion....hmmm smh

Question...!

1. Does that mean that Dangote's cement plants are far almost close to all the infrastructure the GMB plans for the whole country that its diff with Africa's largest population is just $4Billion ? That's awkward.

2. From what I see here, Buhari's govt is only interested in seeing to the full establishment of Northern supremacy in Nigeria's economy for the President to solicit a loan for Dangote's company alone(I know most of you will call me a tribalist but check well you'll see that most of the embattled budget mainly benefits the North)

3. What exactly is that $6b will do in a country like Nigeria if Dangote's proposed cement plants will gulp $2b....?



Please someone with a Reasonable mindset should answer me.....ohh, let the Bashing begin...am ready for it.

MrTeCO:
Wait ooo.....I've been seeing stupid stupid comments here from most NairaLanders with most of you all missing the real fact......here I Quote...:

Dangote gets a loan of $2Billion n a whole country like Nigeria gets a loan of $6Billion....hmmm smh

Question...!

1. Does that mean that Dangote's cement plants are far almost close to all the infrastructure the GMB plans for the whole country that its diff with Africa's largest population is just $4Billion ? That's awkward.

2. From what I see here, Buhari's govt is only interested in seeing to the full establishment of Northern supremacy in Nigeria's economy for the President to solicit a loan for Dangote's company alone(I know most of you will call me a tribalist but check well you'll see that most of the embattled budget mainly benefits the North)

3. What exactly is that $6b will do in a country like Nigeria if Dangote's proposed cement plants will gulp $2b....?



Please someone with a Reasonable mindset should answer me.....ohh, let the Bashing begin...am ready for it.

repogirl:
The OP, NgeneUkwenu is definitely high on Chinese tea.

All Buhari has done is to widely open the gates of importation unto China which is funny because we thought he was encouraging locally made products and exportation?


This deal will greatly benefit the Chinese more than Nigeria because now that there is a free flow of importation from China into Nigeria, the demand for Yuan will increase greatly which will increase its value which is exactly the same thing we are facing with dollar.

Don't try to hood wink us, your certificate less president definitely doesn't understand the intricacies of the deal he just made.

IVORY2009:
lolz... the truth is always bitter bro

When Apple decided that 8,700 engineers would be required to oversee the 200,000 iPhone workers on the production lines, it calculated that nine months would be needed to find them in America – China rustled them up in a staggering 15 days.
. . . What U.S. plant can find 3,000 people overnight and convince them to live in dorms?’

Samsung Electronics Co. built the world’s largest smartphone business by tapping China’s cheap and abundant workforce. Not for much longer: it’s shifting output to Vietnam to secure even lower wages and defend profit margins as growth in sales of high-end handsets slows.
By the time a new $2 billion plant reaches full production in 2015, China’s communist neighbor will be making more than 40 percent of the phones that generate the majority of Samsung’s operating profit. The Suwon, South Korea-based company’s second handset factory in Vietnam is due to begin operations in February, according to a Nov. 22 statement on the local government’s website.

MrTeCO:
Wait ooo.....I've been seeing stupid stupid comments here from most NairaLanders with most of you all missing the real fact......here I Quote...:

Dangote gets a loan of $2Billion n a whole country like Nigeria gets a loan of $6Billion....hmmm smh

Question...!

1. Does that mean that Dangote's cement plants are far almost close to all the infrastructure the GMB plans for the whole country that its diff with Africa's largest population is just $4Billion ? That's awkward.

2. From what I see here, Buhari's govt is only interested in seeing to the full establishment of Northern supremacy in Nigeria's economy for the President to solicit a loan for Dangote's company alone(I know most of you will call me a tribalist but check well you'll see that most of the embattled budget mainly benefits the North)

3. What exactly is that $6b will do in a country like Nigeria if Dangote's proposed cement plants will gulp $2b....?



Please someone with a Reasonable mindset should answer me.....ohh, let the Bashing begin...am ready for it.

repogirl:
The OP, NgeneUkwenu is definitely high on Chinese tea. angry

All Buhari has done is to widely open the gates of importation unto China which is funny because we thought he was encouraging locally made products and exportation? undecided


This deal will greatly benefit the Chinese more than Nigeria because now that there is a free flow of importation from China into Nigeria, the demand for Yuan will increase greatly which will increase its value which is exactly the same thing we are facing with dollar.

Don't try to hood wink us, your certificate less president definitely doesn't understand the intricacies of the deal he just made.

DaBullIT:
Another win for Certificateless , gworo chewing Daura President



I never regretted voting for Buhari


Do you ?

Buhari is Awesome !!!!!!!!!!!!!!!!!!!!!

omenka tonyebarcanista , seun , lalasticlala

aresa:
The loan agreement has nothing to free flow of finished products into Nigeria and our sovereignty still allow us to ban whatever we don't want in our country.

The agreement remains about infrastructure financing and importation of raw materials for our factories and industries to maximum productivity and export.


Reading and comprehension prevents your brand of ignorance..

989900B:
What is the truth?

That you don't know all those phones from iPhones to Uphones are largely 'physically' manufactured in China?




http://www.dailymail.co.uk/sciencetech/article-2090708/Why-iPhone-China-America.html



http://www.bloomberg.com/news/articles/2013-12-11/samsung-shifts-plants-from-china-to-protect-margins

All the Guccis, Pradas, Armanis, I guess you think they are all manufactured in Italy.

Everyone and their dog's gone to China ($20-$35/day) and Vietnam ($6-$11/day) for cheap labour.

I know, I've been to all those places and some of those factories.

The same quality Armani suites for $2000 I bought in Europe in 2003, I have them made for me in Hanoi, Vietnam for $150 in 2014 -- same quality!

Firefire:
Anyway, I fear for the indigenous companies, btw., what is the currency of the loan repayment ? Yuan or USD?

If USD, what happens if Chinese government continue their open currency (Yuan) manipulation and depreciation occurs? Is Nigeria going to hedge this potential foreign currency risk ?

NgeneUkwenu:
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!

Miss Ngene

Truth234:
To be honest these are very important questions that most people won't ask, China is looking for ways to further its business reach while trying to transform its economy to a consumption dependent economy instead of exports, hence the need to invest in other regions where their exports can be pushed to.

China has been looking for a way to substantially infiltrate Africa's largest market, I am afraid Buhari offer that opportunity with this loan agreement. Nullifying every campaigns for diversification to enhance our exports via local raw materials.

In as much as the deal will allow importers and traders access both finished and unfinished goods at a lower commission, the long-term implications is more than what Nigerians are been sold.

repogirl:
and your brand of naïveté is awesomely out of this world.

aresa:
Intelligent and coherent counter facts would have sufficed unstead of your shallow and empty post.

caxim04:
I think we should be worried about implementation and sustainability. We already have list of prohibited items if we maintain it, we will only import what we need from China.