House of Representatives Pushes for Adoption of Chinese Yuan as Trade Currency

The House of Representatives has called on the Federal Government and the Central Bank of Nigeria to accelerate the adoption of the Chinese Yuan as an alternative currency for trade. This resolution was reached on Wednesday following a motion moved by Jafaru Leko.

The motion comes in the wake of Nigeria’s struggle with the depreciation of the Naira against major Western currencies. Leko emphasized the potential benefits of adopting the Chinese Yuan, suggesting that it could help mitigate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability.

The Federal Government had previously announced a bilateral currency swap agreement between Nigeria and China. Leko urged the government to expedite the adoption of the Chinese Yuan, considering China’s significant role in the global economy.

In response to the motion, the House of Representatives resolved that the committees on Banking Regulations, Banking, and Other Ancillary Institutions should collaborate with the Central Bank of Nigeria to explore suitable mechanisms to fast-track the implementation of the 2018 agreement on the Chinese Yuan.

Source: Daily Post