Currency Deal With China: 21 Things To Know

Currency Deal With China To Crash The Dollar By
70%

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.

Source: nairaland