“Let’s quickly adopt Chinese Yuan”-Reps Urges Amidst US Dollar Inflation - The Top Society

“Let’s quickly adopt Chinese Yuan”-Reps Urges Amidst US Dollar Inflation

The Nigerian House of Representatives has called upon the Federal Government and the Central Bank of Nigeria to accelerate the adoption of the Chinese Yuan as an alternative trading currency.
The resolution was reached following a motion put forth by Jafaru Leko, highlighting the pressing need for diversification in Nigeria’s foreign exchange reserves.
The motion comes on the heels of the Federal Government’s announcement of a bilateral currency swap agreement with China. Leko, in his compelling argument, stressed the urgency of incorporating the Chinese Yuan into Nigeria’s foreign reserve basket, especially amid the challenges faced by the Naira against major Western currencies.
Leko emphasized, “Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability.”
Chinese Yuan
Citing China’s dominant position in the global economy, Leko underscored the strategic importance of aligning with the Yuan. The motion garnered support from the House members, leading to a resolution that instructs the committees on Banking Regulations, Banking, and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria. Their objective is to explore and implement the necessary mechanisms to expedite the 2018 agreement on the use of the Chinese Yuan in trade transactions.
This move is anticipated to not only fortify Nigeria’s economic resilience but also potentially strengthen trade relations with China. As the nation grapples with currency challenges, the House’s proactive stance reflects a commitment to exploring innovative solutions to bolster the stability of Nigeria’s financial landscape.
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