Currency swap with China will boost economy
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.