A Sokoto-based bureau de change
operator, Alhaji Ibrahim Yelwa, has
said that the recent currency swap
agreement between Nigeria and China
would boost bilateral trade between
the two countries.
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. (NAN)
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