CHINA DEAL: NIGERIA’S NAIRA APPRECIATES AGAINST DOLLAR

CHINA DEAL: NIGERIA’S NAIRA APPRECIATES AGAINST DOLLAR

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CHINA DEAL: NIGERIA’S NAIRA APPRECIATES AGAINST DOLLAR

– Current China Deal May Resuscitate Country’s Economic Slump

CHINA DEAL: NIGERIA’S NAIRA APPRECIATES AGAINST DOLLAR

Aminu Gwadabe, President of the Association of the Bureaux de Change Operators in Nigeria has stated that the federal government’s recent deal with China is favoring the Naira.

CHINA DEAL: NIGERIA'S NAIRA APPRECIATES AGAINST DOLLAR
Aminu Gwadabe

During the visit of the Nigerian President, Muhammadu Buhari to China last week, the Industrial and Commercial Bank of China Ltd and the Central Bank of Nigeria signed a deal on Yuan transactions.

The deal was struck to resuscitate the current currency fall in Nigeria. This implies that the Yuan will now flow freely around Nigerian banks and will even be included in the country’s foreign exchange reserves.

CHINA DEAL: NIGERIA'S NAIRA APPRECIATES AGAINST DOLLAR
Naira against Dollar

Since the announcement, the Naira had appreciated by 10 naira against the dollar. According to Gwadabe, the dollar was now changing for 310 as against the former rate of 320 and predicted that once the policy is in force, the price of dollar will continue to fall.

“You know more than 50 percent of foreign businesses in Nigeria is with China and before now, Nigerians doing business in China have to change their money to dollar, then from dollar to Yuan.” He said.

CHINA DEAL: NIGERIA'S NAIRA APPRECIATES AGAINST DOLLAR
Central Bank of Nigeria

He told reporters, “You can all testify to the number of made-in-China things in the country. So if small and large businesses can convert straight to Yuan, it’s better.”

He relayed that this new policy will help the informal payment sector. Likewise, he urged the Central Bank in Nigeria to monitor the development closely for effective implementation of the policy.

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Importewrs are so happy currently that  the country means of exchange has gone up against the normal rate. Importers and exploiters are urging that the president of the country assist them in exporting locally made goods and services. If this is done, then it would boost the economy . The exchange market looks forward to that day.

CHINA DEAL: NIGERIA’S NAIRA APPRECIATES AGAINST DOLLAR