In a bid to bridge the widening gap between the Naira and the Dollar in the Exchange rate market, President Muhammadu Buhari, on Tuesday, April, 12, shocked foreign investors mainly from the United States who have been accused of stockpiling their money in dollars.

The President had consistently insisted that he would not devalue the naira against the dollar despite pressure from the International Monetary Fund, IMF and the United States.

With the West insisting that the nation’s currency must be devalued, which has always been part of their conditions for assistance, the East (China) has offered to rejuvenate the nation’s economy by investing in capital projects across the country.

During talks, China and Nigeria agreed to strengthen military and civil service exchanges as part of a larger capacity building engagement.

In line with this, China offered to raise it’s scholarship awards to Nigerian students from about 100 to 700 annually, while 1,000 other Nigerians would be given vocational and technical training by China annually.

According to the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the Chinese President, Xi Jinping also offered $15 million agricultural assistance to Nigeria for the establishment of 50 demonstration farms across the country.

The offer was in response to Buhari’s vow to make Nigeria self-sufficient in food production.

During Buhari’s visit to Beijing, the Industrial and Commercial Bank of China Limited, the world’s biggest lender, and the Central Bank of Nigeria signed a Currency swap deal on yuan transactions.

The implication according to the Director-General, African Affairs Department, China’s Foreign Ministry, Lin Songtian, is that “Renminbi (yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria,”

The Minister of Finance, Mrs. Kemi Adeosun, had said last week that Nigeria was looking at panda bonds or yuan-denominated bonds sold by overseas entities on the mainland, which she noted would be cheaper than the dollar and the Eurobonds.

An economic expert and Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, noted that the currency swap agreement will allow Nigerian banks to issue Letters of Credit in renminbi (yuan) in place of the dollar or euro.

“It will facilitate trade deals between Nigeria and China. The ongoing foreign exchange scarcity has been affecting the amount of Nigeria’s import from China.

“The new deal may ease pressure on the dollar, since demand for yuan/renminbi will start rising,” Chukwu said.

So far, most financial analysts have applauded Buhari for the trade agreement with China; on the other hand, China has also expressed interest in setting up major projects in Nigeria such as refineries, power plants, mining companies, textile manufacturing, and food processing industries as soon as the enabling environment is provided by the Federal Government.

Economic pundits have likened this agreement to his 1984 military regime policy when he directed the Apex Bank to cause a change in the colours of the Nigerian currency.

The exercise was designed to render the money alleged to have been stolen by Nigerian political leaders useless in their hands.
In a bid not to devalue, Buhari according to experts is seeking for a way to weaken the dollar dominated currency by approving Yaun to be one of the nation’s major foreign exchange currencies.

DON'T MISS: The Breakdown Of Buhari's $6b Investments Sealed Deals From China Trip

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  1. na now i know say buhari true true go school... hahahahaha... woe to dollar

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  2. Up up up baba buhari you be man,is now you are working for change for the country i am very happy with your effords toward the signing of money current with China to distract all those Nigeria that loot our money,chine government is a good government i love you baba PMB.

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  3. You've made a right move baba buhari... may the Almighty Allah strengthen you to do more.. fuck those looters.

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  4. You will be our life president
    Up Baba
    I will vote for you 10 times over but for those trying to take us backward pls jail them.

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  5. No country can get us (Nigeria) into a tight corner. Even if they do, God will make for us a way out. I want to use this maximum medium to sympathise with the parents of the Chibokgirls, getting to 2years today since their abduction. God will help bring them back. God is helping us in Nigeria.

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  6. I recommend an average Nigerian to read 'The confession of an Economic Hitman' EHM

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  7. This is a good economic policy which call for an aflouse to the PMB lead government. But sustainability and availability of the exchange of Yaun to a Dollar to a Naira should be revisited.

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  8. The currency swap deal with China is good.I will only suggest that measures are put in place to discourage the importation of everything china into Nigeria. We need to protect our manufacturing sectors for the purpose of wealth creating and employment opportunities.This to me is the first good move by this presidency

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  9. Great, Great and wonderful steps in the right direction. Make Nigeria Great Again!!!

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  10. say Baba. baba is working!!

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  11. see how it work first before jubilation.

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    Replies
    1. You should be optimistic and put sentiment aside pls.

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    2. Jubilate first then it will work

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  12. Good one Mr President , Liberal and Broadminded Leader !! By the grace of the Almighty , everything will soon be alright in Nigeria.

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  13. I think this is in the right direction and will help to reduce demand for dollar as all goods from China can be invoiced in Yuan

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  14. Bro Obama in the Lord. Make USA begin cook dollar chop, we Don Waka... Na now I know of say SAI BABA NA TRUE AMEN... LOL

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  15. Nice move, Sai Baba, Nigeria will be true Giant of Africa sooon.

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  16. It is well... Let's wait & see... Nigerians are seriously suffering under this administration... Only God will save us from all ds.

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    Replies
    1. can i see your face?

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  17. BABA, good deal, good job more grace to your elbow God will continue to straighten you.

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  18. Nigerians, caution o.
    Don't count your eggs before they are hatched. You may be going from frying pan into fire.

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  19. Whoever wrote this needs help. The us stock exchange has been at its best in weeks, the DOWS IA 17,906 points as I write raisin from 15,930 about four weeks ago. Stocks go up & down on daily basis for hundreds of reasons & to deceive ppl, just put up a stupid headline when the stock market is down by o.11% & relate it to a stupid unpopular deal with the Chinese.

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  20. Whoever wrote this needs help. The us stock exchange has been at its best in weeks, the DOWS IA 17,906 points as I write raisin from 15,930 about four weeks ago. Stocks go up & down on daily basis for hundreds of reasons & to deceive ppl, just put up a stupid headline when the stock market is down by o.11% & relate it to a stupid unpopular deal with the Chinese.

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    Replies
    1. Oga na two different news abi you are new to 9ja headline format? (as)

      Delete
  21. This comment has been removed by the author.

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  22. Great move baba, Nigerians should be patient to enjoy the full potentials of this great nation.

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  23. if this is true ,we should be expecting more blackmail from the westerners,either through human right international ,international media and soon from new terror group

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  24. More of God blessings in your life,sai baba
    Wish you longlife and woo to your enemies.Religions matter not,greater you,no tribalism.

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  25. My advice and I hope Nigeria has not signed the bilateral agreement in haste. Cause if the Chinese are allowed to extract our Natural Resources without any plan to establish processing plants in Nigeria, we will be back to square one without any positive value to be achieved. We cannot export Raw Materials out of Nigeria just for us to import finished goods. Deal with the Chinese or Not if Buhari does not follow my advice we will only be robbing the West to Pay the East.

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  26. may Allah help us in moving this great country forward

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  27. Good move. in almighty GOD we trust, may HE help, guide and safeguard PMB, Nigeria and Nigerians Aameen

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