quackmaire:


u be idiot i swear...... has ur buhari not spent $2b so far on his traveling?

ticker:



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portside:
Tell them ohhh, am very happy on this enlightenment with this I can boldly argue my points with some PMB loyalist who has been blinded by shame now but doesn't want to believe that PMB foreign trips are futile.

BiafranNigerian:


1. You can not see logic, because there is no logic is applying for a loan, that you can not diversify the expense. The chinese government, will present list of chinese companies to handle the construction jobs in Nigeria and Chinese Citizens will handle the field jobs except labourers. The materials for the construction will be shipped from China, shipping paid to China and money remains in China. Lets say, Chinese company buy steal 5 Yuan and chose to capture 10 Yuan in the quotation, is there an independent auditor ? Must be chinese. So your $2b might actually mean $1b in real cost. So, China takes the away $1b in profit, plus interest, plus added employment to her citizens. What does Nigeria get ? Chinese infrastructure that is worst than Julius Berger can construct.

That is logic, I hope you see it.

2. Do I need to explain further that Chinese government consistently devalue their currency, manipulates it in such a way that it favors them, so your 30 Naira to Yuan today, might become 300 Yuan tomorrow, the sharp increase in value will attributed to high demand in Yuan even though no physical money moves in this trade deal.

I love the fact that USD to Naira rate will fall due to less demand, but then, that is a mirage if the value of Yuan will go up. Except value of Yuan stays low, then the purpose is defeated, cos importers wouldnt be needing dollars.

This is logic, see it.

3. The Chinese are at trade war with America, Yes. And we have become another pawn in the games of Chess, I hope we survive.

TheGoodJoe:



The question is, how does this deal diversifies our economy.

Without much made public about the deals, the most important thing is the development of our Refineries. Some people will not notice that if we produce refined products in large capacity, we can become a Petroleum products exporting country.

We also have a large demand for Petrol in our country and when the refineries are functioning, our dependence on Petrol importation will reduce.

We are also going to have partnership deals that will boost our exportation of solid raw materials.

greenpasture:


Nigeria gets huge advantages from this deal which by the way is a done deal.
1. China gets to reflate her economy without increasing inflation ( loan in exchange for purchase of goods and services)
2. Nigeria get dollar ( forget those people trying to confuse themselves. China is giving Nigeria dollar, repayable in dollar. China dominates the U.S Treasuries market so dollar isn't an issue for china - they have loads of it
2. Nigeria pushes project risk unto China. Each project must meet specified performance milestones ( nothing like abandoned project)
3. This is the part confusing the writer - Nigeria has held even during GEJ time 7% o it's fx in Chinese Yuan. This has gone up to 10% and nigeria's CBN becomes the Yuan exchange/ access point for Africa. This is huge because 70% of our important are from China so instead of suffering exchange rate loss going from weak dollar to strong Yuan, traders can buy Yuan direct from CBN. In view of the extensive use of this currency in Africa today t provides excellent arbitrage/ commission income to nigeria's CBN
4 yes federalism and diversification are good concepts but Nigeria also needs to bridge it's massive infrastructural deficit and in China it has a good Partner.

All in all, this is a great deal for Nigeria and China and the beginning of an alternative world financial market not solely based on dollars.

Fear not. It's a done deal. Wait for the impact. Tops next 12-18 months.

Respects

TheGoodJoe:


I went through the stuff that guy wrote and I can not see what is a scam.

He said China is taking away competition because in their loan, they will the project and deduct it as payment.

Le Kwa Nu Madu.

If someone is owing me One Hundred Thousand naira and I say that I will do the tilling of his new house and take the profit as my payment.

Please, help me answer, is that a scam?

SamuelAnyawu:
We Igbos are okay with Buhari on this positive move

SamuelAnyawu:
We Igbos are okay with Buhari on this positive move

manny4life:


I'm sorry I don't buy into the whole diversity stories because you and I know very well we don't have to lean on China for economic diversity, let's be honest with ourselves. Someone suggested True Federalism at all levels. What's hindering true economic diversity is nothing short of tribalism and distrust among ourselves. Imagine the rail saga going on at the National Assembly, the Second Niger Bridge, how about seaports, or the airports saga and the list is endless.We can't talk about infrastructures without hinting on electricity, the last I checked, NEPA as divided into separate units, so what happened?

Buhari's chant during campaign was "CHANGE". If at this time we cannot figure out why our refineries are not working, even if China build newer ones, same problems plaguing the old ones will be revisited on the new ones. Like I've always asked, if China is giving us all these, at what expense? Instead of us dealing with our institutional problems, we're making it seem like China is our solution...

ticker:



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Chukzyfcb:
Everyrone keeps talking about how this move will reduce pressure on dollars. Even the report says 90% of Int'l trade in Nigeria is done in dollars, but nobody is asking
Why then has pounds and euro risen this high?
Coz despite the fact we'v been dealing with dollars, the exchange rate of Euro"s and Pounds has also gone wayyyy High. How does this move help euros and pounds? Coz everybody is just mentioning dollars! Dollars!! Dollars!!!

Tonyosas101:
you need to modify your post please..i think you meant "if am owing someone" and not "if someone is owing me"

anyway, if both parties (you and the someone) agrees to the terms and conditions..i see NO scam in it

ticker:



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Goke7:
agreed, so what are the alternatives? We need to proffer solutions more these days than complain.

But if its all about complain, then sorry op you've got no point

TheGoodJoe:


Thanks but that is exactly what I meant.

Take me as China and the person owing me is Nigeria.

China is suggesting that they will do the work (Infrastructure development) instead of Nigeria getting someone else to do a job for them. China will take the profits as the interest from the debt.

jumas:
1.As President Buhari and CBN Governor, Emefiele moved closer to actualizing their promise to strengthen the naira against the US dollars
2.By signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd on Tuesday in Beijing, China.
3. The agreement will allow Nigerian who imports mainly from China conclude their transactions in the Chinese currency instead of the dollar
4. The new agreement would see Nigeria-China trades, which accounts for over 70 percent of imports into Nigeria, concluded in the Yuan.
5. Until now over 90% of int'l trades between Nigeria & the world is done in dollars, & in the process putting so much pressure on the naira
6. Nigeria imports almost all it needs from the West, Middle East and Asia.
7. The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the dollars to the Yuan to perfect the agreement.
8. “It means that the renminbi (Yuan) is free to flow among diff banks in Nigeria, & the renminbi has been included in the FXR of Nigeria,”
9. FXR means foreign exchange reserves
10. Lin Songtian, director general of the African affairs department of China’s foreign ministry, told reporters in Beijing ...
11. .. a few minutes after the agreement was signed between the Governors of the nations’ reserve banks..
12. in the presence of President Buhari & President Xi Jingping of China, who is hosting Buhari and top Nigerian officials to a state visit.
13. Lin said a framework on currency swaps has been agreed with Nigeria, making it easier to settle trade deals in Yuan.
14. China has signed currency swap deals with countries ranging from Kazakhstan to Argentina as it promotes wider use of its Yuan.
15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.
16. Beijing also signed agreements to develop infrastructure in Nigeria, part of a drive to deepen its ties with Africa.
17. It has offered Nigeria a loan worth $6 billion to fund infrastructure projects.
18. Also, ICBC signed a $2 billion loan deal with Dangote group, to fund two cement plants it plans to build, Lin told Reuters.
19. China’s official Xinhua news agency cited President Xi as telling Buhari that there was huge potential for economic cooperation, naming
20. Naming oil, refining and mining..
21. Nigeria is also considering issuing Panda bonds (mainly Yuan denominated) as against euro bonds because they are cheaper.

jpphilips:



First human being after 3 pages of goats, let me add to yours, if we divest Dollars to yuan, our Foreign reserve will Quadruple because of exchange rate differential, since China is Nigeria's biggest trading partner, it is a good move.

2) America is a debt laden country, it won't be long before another bubble occurs like we saw in 2008, Donald Trump has said it severally, despite the criticism he gets from the establishment who want to downplay the real state of the US economy, never mind that Ted Cruz was one of the GOP senators who held Obama by the Jugular when they nearly defaulted on their loans.
we lost a lot of foreign reserve in the process during Soludo's economic magic era not any fault of ours but the fact that the economic melt down
weakened the dollar.
Most Nigerians don't seem to realize how badly our economy bleed with those Master cards and Visa they use. We lose money while America smile to the bank, never mind that the US shale revolution put us in this mess in the first place, it is unwise to run to them for help.
Even American corporations are all manufacturing in China so getting American goods with Yuan (A currency weaker than Naira) is the best deal ever.
The Issues we need to be discussing are how Washington will take it? definitely not lying down, Gaddafi's African dinar proposal landed him in 6ft, Buhari should understand that he just dealt a severe blow to the western economy, May God protect him for us when the hammer of washington falls.

3) The Chinese Yuan is very unstable, if the Chinese economy shrinks, we will lose a substantial sum in our overall Foreign reserve, I think that is why Buhari tied the exchange of goods and services as an addendum to the deal (smart move).

Reyginus:
This might be too smart for the average Nigerian. Watch how it's reduced to a wailer and zombie contest. Lalasticlala, Mynd44, Seun please move this to the frontpage for those who really want to understand something about the Yuan and our deal.

megama:
can somebody tell me if this loan can fix our local industries or cripple them futher,for me as a businessman I know that China is only an export oriented country. They must always protect their interest first. By the way why not reduce our reserve by $2 billion. Instead of borrowing with interest, NIGERIA be wise.

Saintp:

Hahaha, bros, you have studied this forum very well. Let's just watch as Zombies battle Wailers in this match. Be the referee naa, me, i go be linesman.

gbens2000:
my guy is there any positives here,we are selling our country to china that's wat this mean,pls take a look at Zimbabwe and Angola.then u will understand

manny4life:


It gives their currency massive strength, how about the Nigeria currency? Please explain how this deal strengthen Nigerian currency or yet, be beneficial to our currency considering that Nigeria's "import" doors would be wide open.

I don't have a problem with the construction benefits but I believe that any successful nation can get any of this which makes be believe that this is NOT about benefits, rather an internal problem.

Even without this deal, Nigerians have always imported from China, I fail to see what difference this is gonna make. I mean ask yourself, why would I import raw materials whereas it's cheaper to import it "by pennies" from China? Exactly, even without this deal, most of our products will come from China, the only difference is that (1) It's official and (2) products will no longer be bought using $$$$ but rather, in Yuan. Anyone can now import from China because even our banks will now be trading in Yuan. Heck, Yuan is about to be the second currency after $$$. I'm yet to be convinced this is good for Nigeria.

jpphilips:


Nigeria is operating a fixed currency regimen, like a subsidized currency in lay man's terms, since our oil revenue come in dollars being the world's trading currency, it makes sense to subsidize it more than others.
If we had trade interest in Euros and Pounds more than dollars, the CBN will reverse the trend, it is an economic necessity not an accident.
So the more we lose forex reserves (dropping crude price) the less money we have to support those other currencies.

Now, since China is a manufacturing economy that has everything we need (the Computer you are typing with is a good example), we need to exploit their weak currency since we are equally running out of $$.
Emeka will open LOC with a Chinese company and his bank will pay the company $$ from CBN's reserves that is drying up, now the CBN says I need to get Yuan for Emeka which is lower than both our dollar and Naira so i can triple my foreign reserve and accommodate more Emekas.
Because the Naira is stronger than the Yuan, Emeka's goods will land cheap and you will stop complaining about high cost of living.

Now Clap for Buhari!!

ElCount:
I ve been asking the question "what will China be getting in return?"
Zombies hv failed to give an answer to this question, China is not running a charity organization and nigeria is not a country anyone can count on to manage that loan properly and China is smart enough to know this so its obvious that they have at least a backup plan which we don't know. China is trying to cement its place as a world power and tilt the balance to their favor if buhari has sold us out well... The consequences are better left imagined hopefully by then the country would hv divided and B14FR4 go dey their own away from this nonsense make una dey shout sai buhari una go follow am go 6 ft under if una no take time