LAGOS, Sept 5 (Reuters) - Nigeria's central bank plans to diversify its $33 billion in foreign exchange reserves away from the dollar by switching a tenth of the stockpile into yuan, underlining the momentum behind China's drive to internationalise its currency.

"We are looking at anything to start with from 5 to 10 percent of our reserves," central bank governor Lamido Sanusi said on Monday.

The central bank had already said that it was considering reducing its reliance on the dollar, which economists say accounts for the bulk of its $32.96 billion in reserves . The bank does not publish the currency composition of its assets.

But Sanusi, speaking to CNBC news by telephone from China, said Africa's second-largest economy was not abandoning the dollar and euro. "They are going to remain an important part of our holdings," he said.

http://af.reuters.com/article/commoditiesNews/idAFL5E7K51OB20110905

The CBN will diversify up to 10 per cent of Nigeria’s foreign reserves into the Yuan.

GOOD move. This is what they call proactivity. Nigerians don't know much of this!!

Hope it is a right move

chrisvicch:

What is the name of Japan currency? I am a little bit confuse here.

Japan= yen.

Good move, but Nigeria is looking for trouble 

^^^ why dont u goggle it, its  called yen

BEAUTIFUL. Yes, we just have to be proactive. We cant shy away from the fact that the US dollar isnt as strong as its use to be, and having all our Reserve in their currency is a very BIG risk.
And japanese currency is YEN not Yuan - China's.
Soon enof, China will even overtake the US as the world TOP economy and even the new Super power. Change is the only constant thing, Right? Good move CBN.

i like this, America own too much sef. imagine buying 1$ for N169

I am more comfortable with GHANA CEDIS!

Long overdue!!!
Some big corporations moved part of their cash early to Gold, now its too high.
Good move CBN.

I somehow doubt we can fathom the real reasons why CBN take this approach save for near guesses without real technical details. but hey, it is a free world

All posting in Favor please be more elaborate why this is a Good Move? anyone please

China - An economy in the right direction

lagerwhenindoubt:

I somehow doubt we can fathom the real reasons why CBN take this approach save for near guesses without real technical details. but hey, it is a free world

All posting in Favor please be more elaborate why this is a Good Move? anyone please

Though I stand to be corrected, I think its just about saving money in strong currency. The same reason you wouldn't want to hold on to so much dollars if you foresee a drop in its value or buying another currency with a potential of being relatively stronger than the currency you have at hand

That is a good move by the CBN and it won't surprised me when China finally emerged as the Super Power or Number one Economy because i have been anticipating this for long in line with what was written *YEARS AGO* .

This is the beginning of total freedom.

@fuqua, why not Zimbabwe Dollar?  

lagerwhenindoubt:

I somehow doubt we can fathom the real reasons why CBN take this approach save for near guesses without real technical details. but hey, it is a free world

All posting in Favor please be more elaborate why this is a Good Move? anyone please

Hmmmm, as much i don't want to think there is a real reason besides the present value and credit rating of the US, maybe there is more to it than meet the eye.

prepare for invasion people . . . Saddam did it, he was ousted. Qaddafi did it, same thing happened.

It is a recognition of the emergence of China as the new dominant economic power. United States is terribly indebted to China. Why on earth should we continue to hold on to their currency blindly?

this is what i have been waiting for
American monopoly is getting out of hand

A nice move by the CBN.

saintneo:

prepare for invasion people . . . Saddam did it, he was ousted. Qaddafi did it, same thing happened.

Smh, some thoughts are better left to dwell in the dungeons of the mind.Saddam/Qaddaffi, Nigeria, Really

You are obviously not the sharpest tool in the shed.

This is another form of ISLAMIC BANKING!!!

So Sanusi get small sense?

why chinese yuan

Sanusi should be praised for this. We should insulate ourselves from the fall of a currency being printed like tissue paper to the detriment of other economies.

The only thing I disagree with is the %. We should make it 30%

Good move, How can anyone keep funds in a country that is chronic debtor. Its not also wise to import from USA due to strength of their currency. Its China all the way bro. I love USA but I prefer doing business with chinko.

May be a good idea but i thought the naira was sort of pegged to the dollar or is it because there is a propensity for the yuan to rise and the dollar dropping in value in future, can someone expantiate further?

Good move

The US thrived on their financial service sector at the expense of the real sector. china on the other hand makes everything real from baby clothes to warships.

evenn china is diversifying its over a trillion dollar reserve away from d dollar. So why shouldnt Nigeria

I am sorry but can the economists in the house explain how this is a good move? The same China that is battling inflation like crazy?! The only currency that anyone worth their salt is putting their confidence in now is precious metals and our govt decides to stockpile more worthless paper? I no sabi for this people again, abeg

^^^
we r diversifying not moving. they r completely different terms

BTW we r just shifting just 10% of our reserves from the largest economy to the second largest economy

kabukabu:

Smh, some thoughts are better left to dwell in the dungeons of the mind.Saddam/Qaddaffi, Nigeria, Really

You are obviously not the sharpest tool in the shed.

just as your username implies - your thoughts have no direction; you just an animal amongst the herd. why the hell will someone come up with a CT instead of countering it, you just embark upon insults?

For your information, Saddam attempted to change Iraq's oil sales from the dollar to the euro prior to his exit, this was to affect the dollar thus a tool for change of  the price of oil at will especially among the OPEC. Qaddaffi was planning to implement a gold denominated currency which will be used for the trading of oil and other mineral deposits in Africa; this will as well keep the price of oil within the control of OPEC. The independence of small nations can never be entertained by the US, there must be a way to manipulate . . . invasion - physically, economically, electronically, etc.

Good move!!!

Good moves. Kodus to the FG.