Joel3:
just choose to be illiterate, have you ask yourself what will Nigeria export to China in return for Yuan? where we the central bank get the yuan from?

Seun:

Professor Soludo. Emir Sanusi Lamido Sanusi. Any Nigerian economist who is respected abroad. They are largely in agreement.


First of all, here's a list of 6 economists who predicted the meltdown: interblack.com.

Having said that, you seem to misunderstand the predictive role of Economics. Economics cannot predict exactly what will happen in the future because that depends on the policies politicians chose to implement, but it can predict what will happen if they implement particular policies.


Yes, it drove Russia into recession, [url=http://chinadigitaltimes.net/2008/09/beijing%E2%80%99s-burden-a-slowing-china-bodes-ill-for-the-world-economy/]slowed China's growth[/url], and strangled India's stock market.

funmillion:
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Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

15. Nigeria would become the clearinghouse for Yuan denominated transactions for the whole of Africa following the agreement.

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.

NgeneUkwenu:
Currency Deal With China To Crash The Dollar By 70% !

President Buhari doesn't have "certificate" but he sure knows how to make things happen and do what some heroes with unproven Ph.D. can't even dream of...

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.

This is good, better days are ahead, I'm sooo happy and hopeful right now. Nigeria shall be great again!

Miss Ngene

989900B:
3 pages so far, and not one single valid reason why this deal shouldn't have been struck, yet, all the naysayers are so full of their beliefs.

You've gotta love the human mind.

CSTR2:
The country does not have the technology to build modern refineries or railways.
Even the US gives some of her critical indigenous projects to China.
It is the job of the FG to dictate and monitor the Chinese Contractors to ensure full value delivery.
The errors of the past must not be repeated.

Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

repogirl:
The OP, NgeneUkwenu is definitely high on Chinese tea.

All Buhari has done is to widely open the gates of importation unto China which is funny because we thought he was encouraging locally made products and exportation?


This deal will greatly benefit the Chinese more than Nigeria because now that there is a free flow of importation from China into Nigeria, the demand for Yuan will increase greatly which will increase its value which is exactly the same thing we are facing with dollar.

Don't try to hood wink us, your certificate less president definitely doesn't understand the intricacies of the deal he just made.

manny4life:



Wonderful... As in, is this the same Seun that I know? Glad that you have a different perspective to all this currency saga. I've asked the same questions: how does increased imports strengthen Nigerian currency?

2rutalk1:
Only someone who lacks understanding of the rudiments of Economics will applaud this move. This is totally counterproductive and it will make no economic sense in the long run. For your information, this policy will perpetuate Nigeria in her already import dependency trap. They have only succeeded in dividing Nigeria and China into Consumption/import dependent economy and Production/export economy respectively. Any policy that cannot strengthen our export base in relation to import is useless for now. What we need is economy diversification via import substitution strategy of industrialization.

It is obvious the OP and indeed the FG do not understand the economic implications of this especially in the long run, hence the jubilation.

Joel3:
just choose to be illiterate, have you ask yourself what will Nigeria export to China in return for Yuan? where we the central bank get the yuan from?

Ratello:

My baby you are here, I love the way you gave an insightful contributions to this thread...you can now come to Daddy, don't be afraid.

Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

Firefire:


Thank you. Where is the plan to correct our balance of trade deficit ?

Importing in Yuan is not the solution of diversification we require.

May God help Nigeria.

ISpiksDaTroof:
You clearly don't understand what is happening, and I honestly don't have the patience to start going round and round trying to explain in layman terms to someone who already has their minds made up. You need to just stick to running a website full of loonies, bigots, and half-educated oafs. This is undoubtedly beyond your comprehension.

President Buhari and China just threw Nigeria a huge lifeline. It's up to you guys to grab it now or sink.

Seun:
I have no problem with trade deals, but anyone who thinks this will strengthen the naira is confused. The only thing that will strengthen the naira sustainably is if we export more (or if the price of oil recovers). Our honourable president's well intentioned voodoo economics didn't work the last time and won't work this time either. He needs to listen to mainstream economists and follow their recommendations. Economics works.

akanbiaa:
Yuan deal might be a temporary measure to relieve pressure on dollar naira exchange rate while creating time to strenghten productivity and export prowess.

Ratello:

My baby you are here, I love the way you gave an insightful contributions to this thread...you can now come to Daddy, don't be afraid.

Emekamex:
Good move but we all should be aware that China regularly devalues their currency in bid to make their export cheaper than the USA and other European producers, that is how they stay at the top.
Here is an excerpt from business insiders.


http://www.businessinsider.com/china-currency-devaluation-just-getting-started-2016-2

I will advise the government to limit forex to be converted to Yuan to around 6-8%, given China's unethical move of always devaluing their currency whenever their economy regresses in order for us not to lose our forex value.

CSTR2:
Exporting oil to China at giveaway price and getting an overpriced albeit world class infrastructures is a great deal than we have gotten in decades.
I don't mind selling $4 billion worth of oil for $3B worth of world class Infrastructures if that is what it takes.

repogirl:

manny4life:


The bold part is a lie... Name some"critical" projects the U.S. has given to China. Stop peddling false information.

billyG:

so what d problem with that?

jpphilips:


Mainstream economists like Ifeanyi Uba?
Or the Prof of Economics (Utomi) who said the government has secretly devalued the naira hence will exchange for 500 to $$ 2 months ago?
The same block headed economists deceiving Buhari to devalue the naira since January raising fears of economic crash?
The same confused economists who insist our only chance of diversification is in Agriculture when the answer lies with the downstream sector?

Africans like big names with no substance, the only two Economists in Nigeria that have showed full working are Idika Kalu Idika and Chukwuma Soludo, the rest are mainstream noise makers, stop taking them seriously.