Ever since the announcement by the FG that the Chinese Yuan will be allowed to flow freely amongst the Nigerian banks in a currency deal, i have being reaching out to varuous friends(and even foes), in a bid to understand the implications of this deal to our economy in the short run and the long run. After much of my research i have finally come to the understanding that it is indeed a bad deal. The deal is synonymous with the President's earlier shoddy quick-fix monetary flops that all ended up making the Nigerian economy worse off.
According to various economic experts the deal is a win for us because it would help to take off the pressure of the dollar on our Naira and thus help stabilize our exchange rate, focusing more on the CBN official rate of N199/$1. This could, like the earlier domiciliary policy by the CBN, help in the short run, but could be disastrous in the long run. Many economists fear that this could lead to an overdependence on the Yuan, thereby destabilizing our Naira. Also there is the issue of our markets being overrun with Chinese standard and even substandard goods. This policy, like all other policies by the President, is aimed at fixing the monetary aspect of our economy, while neglecting the productive aspect of our economy. It is like a farmer who instead of tilling the land, and then sowing, wastes his time in only stocking his home with all manners of seeds. Another issue which most economists fail to look at is the aspect of foreign business relations. Quite given the Chinese are prevalent in mass production and some level of technology, but they are poor in innovation and planning. There are countless reports on CNN, ALJAZERA and even CCTV on the inability to see and forecast ahead. The Chinese economy is witnessing a slowdown and is even expected to fall lower in the future. This slowdown has been attributed to their poor planning and inexperience in financial intelligence. It would be very dangerous for us to rely on the Yuan, in light of this, for if it is not as stable as the dollar. If the Yuan experiences a crash like the Russian ruble of the eighties, then our economy will go into shock.
Another aspect is the ignorance of our government on the importance of the JP Morgan's influence. According to some experts, it has been said that unlike the western listing firms, the Chinese will not direct our spending and allocation of resources to projects. This has been said to be a breakaway from colonialism. But is that really true. Would it be wise for foreign investors to drop money into the laps of a 3rd world country, without knowing or directing what it is used for.
Another very critical aspect is the attitude of the Chinese and their gameplan. The Chinese hope to spread their Renmibi and Yuan into other countries, as a way of causing problems for the US. They are not really looking at the advancements and developments of developing and underdeveloped countries. So should be looked and treated with caution. I would have liked for the government to treat the Chinese with the same yardstick as used by the previous government of GEJ. The administration of President Jonathan did countless deals with the Chinese, but never one as one way and precarious as this current deal. The Zimbabweans previously did something like this, by swapping their Zimbabwean dollar with the Yuan, but so far it has not produced anything successful. Infact, it can be argued that it has further complicated Zimbabwe's monetary policy and has worsened their economy.
http://thediplomat.com/2016/01/zimbabwe-chinas-all-weather-friend-in-africa/
The Federal government, should be very careful with this deal, and should balance it with shoring up our balance of trade with the Chinese, by making sure that our productive capacity is improved, and some of our goods make it to the Chinese markets, for if not, then this deal will backfire and be another flipflop by the FG. The FG should borrow from the previous administration's attempts to improve the local productive capacity of our country, instead of constantly looking for a foreign quick fix to our problems. That would be disastrous

Hmm

Ok, what do I now say, inasmuch as you have a point, I will like a trade ballance to be struck, thru our own local development and exporting, at this point we need to reduce reliance from dollars

Does this mean the next foreign currecy for us is Yuan?

Well, I'm not an economist but this Govt should be very careful.

I don't want to say Buhari isn't good but sidelining the dollar is like economic suicide.

Is this FTC

VISTIN:
Does this mean the next foreign currecy for us is Yuan?

Well, I'm not an economist but this Govt should be very careful.

I don't want to say Buhari isn't good but sidelining the dollar is like economic suicide.

Is this FTC

But the pressure on dollar is high. Do you think we should be trading with different currencies without really on dollar alone?

VISTIN:
Does this mean the next foreign currecy for us is Yuan?

Well, I'm not an economist but this Govt should be very careful.

I don't want to say Buhari isn't good but sidelining the dollar is like economic suicide.

Is this FTC

Not to mention geopolitical suicide.

No leader, no non superpower country shuns or disrespects the dollar and lives to tell about it.

Believe it or not, whereas I personally see it as an economically sensible deal ( the currency swaps, not the loan) , we, more like Buhari, has declared an economic war against the United States Of America.

We should not forget that USA employs sabotage and subterfuge , as well as it's armed forces, as economic policy tools.

To be forewarned is to be forearmed.

Cool Story


The fight is no longer travelling. It is an attack on the outcome.


Buy your burial form, na die u dey

After speaking with your "friends and foes" you came to the conclusion "it is a bad deal".

Pray tell, is there ANY deal or decision Baba would make which wouldn't be bad in your sight after you must have spoken with your "friends and foes"??

Is there any deal Jonathan made which wasn't a PERFECT deal in your sight after sampling opinions from your "friends and foes"??

Funny people. We know all of you. No need sugar coating nothing, trying to pass yourselves off as just. We know NOTHING Buhari does would be good in your sight whether you consult your "friends and foes" or not.

Next.

omenka:
After speaking with your "friends and foes" you came to the conclusion "it is a bad deal".

Pray tell, is there ANY deal or decision Baba would make which wouldn't be bad in your sight after you must have spoken with your "friends and foes"??

Is there any deal Jonathan made which wasn't a PERFECT deal in your sight after sampling opinions from your "friends and foes"??

Funny people. We know all of you. No need sugar coating nothing, trying to pass yourselves off as just. We know NOTHING Buhari does would be good in your sight whether you consult your "friends and foes" or not.

Next.

eiya... Defending Buhari is the hardest job on earth now but keep it up. Go get more strength because even Buhari self has plans to make his defense more difficult by the things he will do.

China And Zimbabwe Deal. Is There Anything Nigeria Need To Learn?

check it there.

I hope for the best out of this deal......

on the contrary, its very easy. who ever said the dollar is being replaced. An option is just being created to relieve d pressure on the dollar. that means instead of converting naira to dollars and then to Yuan, this proposal converts directly to Yuan. Is that so difficult for anyone to understand?

Hiploko:
eiya... Defending Buhari is the hardest job on earth now but keep it up. Go get more strength because even Buhari self has plans to make his defense more difficult by the things he will do.

omenka:
After speaking with your "friends and foes" you came to the conclusion "it is a bad deal".

Pray tell, is there ANY deal or decision Baba would make which wouldn't be bad in your sight after you must have spoken with your "friends and foes"??

Is there any deal Jonathan made which wasn't a PERFECT deal in your sight after sampling opinions from your "friends and foes"??

Funny people. We know all of you. No need sugar coating nothing, trying to pass yourselves off as just. We know NOTHING Buhari does would be good in your sight whether you consult your "friends and foes" or not.

Next.

I cannot believe you've descended to this level. One thing is certain; we are with the exception of seasoned economist, oblivious to the rudiments of this deal. It was further highlighted in her argument how she contacted her friends and foes alike to get a better understanding.

Your counter arguments could have been to poke holes in her previous arguments but you didn't. You resorted to sheer sentiments which meant you had nothing tangible to say.
I just don't understand how every move of this government with be compared to a previous government that was tagged retrogressive. You dolts can't complete a sentence without mentioning Jonathan.

It's a pity, I must say.

OP, u don't have to claim economist. this simply means reducing our reliance on dollar or having a dollar dominated economy. Now. e mean say u go fit convert naira directly to Yuan instead of the traditional Naira-dollar-yuan. peace…