Currency swap with China will boost economy

Chinese PresidentXi Jinping(L) holds a welcoming ceremony for Nigerian President Muhammadu Buhari before their talks in Beijing, capital of China.

Chinese PresidentXi Jinping(L) holds a welcoming ceremony for Nigerian President Muhammadu Buhari before their talks in Beijing, capital of China.

Alhaji Ibrahim Yelwa, a bureau de change operator in Sokoto, says the recent currency swap agreement between Nigeria and China will boost bilateral trade between them.

Yelwa, the Chairman of Mailabo Bureau De Change, told newsmen in Sokoto on Saturday that the agreement came at the time when Nigeria’s economy was in dire need of diversification.

“The agreement between China and Nigeria means that the de facto currency — dollar — will no longer hold on the import and export deals between the two countries.

“The quest for dollar through our banks will definitely reduce as all transactions between Nigeria and China will be in Yuan instead of dollar,’’ he said.

He observed that oil sales from Nigeria to China would be settled in Chinese currency, stressing that access to Yuan would also be easier.

“The swap will eliminate challenges arising from transactions with the dollar and promote business flexibility between Nigerian and Chinese,’’ Yelwa explained.

According to him, the agreement will reduce trade imbalance between the two countries and create an enabling environment for trade by barter.

The News Agency of Nigeria ( NAN) reports that President Muhammadu Buhari and the Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele signed the agreement with the Industrial and Commercial Bank of China Ltd. on April 12 in Beijing, China.

The agreement will allow Nigerian traders to transact business with Chinese currency instead of dollar.

With the agreement, Nigeria will become the clearinghouse for Yuan denominated transactions for the whole of Africa.



3 Comments
  • Charles Coteen

    God bless PMB/APC. Our business transactions will soon be easier

    • Bamidele Omotosho

      It will not change anything rather the Black Market price of the dollar will rise.Nigerian importers of Chinese products will have faster bureaucracy. The solution to Nigeria’s economic problem is to raise GDP by creating employment and stimulating higher productivity through private entrepreneurship

  • Ogbu Nwaeya

    Nigerians who voted for PMB will never regret doing that,because he is going to lay the foundation for sustainable economic developments.we need speed train.good roads regular electricity supply which china has the know how and are ready to help us with without enslaving us.
    The look east policy of PMB administrations is a good idea.after over half a century of relationship with the west.what did we get in return.wars and economic slavery.we export cocoa and import chocolate.we export crude oil and import petro chemicals and lubricants.we export oil used in generating electricity to other countries,yet we dont have light.
    China/Asia is where things are happening now.we were scared of offending the powers that be,That we missed the chance of being a founding member of the China backed Infrastructural development bank.we need to be there because it will serve our interest.
    The western backed news organisations blocked the coverage if PMB’s visit to china.Rather they were busy trying to instigate nigerians against the govt by making it look as if they are not responsive to the needs of its people especially over the issue of Chibok girls.
    The question one must ask is how come its a foreign journalist that got the tapes showing some of these girls.How did this journalist get the contact of the Boko haram members that gave them the tapes.and then ,Is it a coincidence that all these are happening while PMB was in china trying to chart a new development course for the country?.
    The activities of foreign journalist should be closely monitored by our security agencies.In the past a lot of security agencies use journalist in carrying out their duties,and i have no reasons to believe it has stoped.
    God bless PMB,and God bless Nigeria.

  • XRAY

    This is a good deal because China economy is big and that will reduce the pressure on our dollar foreign reserve

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