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Nairaland Forum / Nairaland / General / Politics / Currency Deal With China: Things To Know (42243 Views)
Innoson Motors Signs Deal With China To Pump $1bn Into Nigeria / Ibom Deep Sea Port: Udom Emmanuel To Sign Deal With China (Pics) / Buhari Didn’t Sign Any Loan Deal With China – Presidency (2) (3) (4)
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Re: Currency Deal With China: Things To Know by ISpiksDaTroof: 3:16pm On Apr 15, 2016 |
TheGoodJoe:The truth is most of them are not exposed / enlightened enough to understand the big impact of a move such as your country becoming the clearing house for the Yuan in Africa on Western Countries. China is aiming to takeover the world--- it will eventually--- and it has just cut Nigeria in on the deal. Anyone that says this deal is no good for Nigeria is either a mo*ron, a hater, or both. 4 Likes 3 Shares |
Re: Currency Deal With China: Things To Know by Firefire(m): 3:17pm On Apr 15, 2016 |
TheGoodJoe: The pressure on our reserve apart from the reduced revenue from oil, is not coming from China, but from the west. To me, the only benefits of this deal is to open the floodgate of Nigeria to all manners of importation of useless and fake products from China without any corresponding export. Why ![]() 2 Likes |
Re: Currency Deal With China: Things To Know by TheGoodJoe(m): 3:18pm On Apr 15, 2016 |
Firefire: Are we going to source the equipments to improve mechanized farming in Nigeria? We will still have to import them, which in turn means more pressure on our reserves. With this deal, we can get the equipments for mechanized farming at a cheaper rate and also not put pressure on our dollar reserves. 1 Like |
Re: Currency Deal With China: Things To Know by CSTR2: 3:18pm On Apr 15, 2016 |
TheGoodJoe:That is exactly what should happen here. Cheap oil for Infrastructure. But then our government is good at Messing up good deals. 2 Likes |
Re: Currency Deal With China: Things To Know by manny4life(m): 3:19pm On Apr 15, 2016 |
CSTR2: You mean Keystone XL project which the last I checked (few months ago), it was blocked by the Obama Administration. Keystone Pipeline was built by an Australian company (Worley Parsons)... So please, educate me on which pipeline project was constructed by Chinese contractors? I like to learn.. Thank you 1 Like |
Re: Currency Deal With China: Things To Know by Ratello: 3:20pm On Apr 15, 2016 |
ISpiksDaTroof:I have realised that you are so clueless to the level that "human faeces" will look like "porridge beans" to you.....I wondered the school you attended that did this damage to you ![]() |
Re: Currency Deal With China: Things To Know by TheGoodJoe(m): 3:21pm On Apr 15, 2016 |
Firefire: There are a lot of factors that causes us to lose Forex in our reserves and importation is a big one. The pressure on the dollar reserves is already much, so we need an alternative with Crude price low and a possibility of going lower. The whole world Imports from China. UK, America, Canada. So the fake products talk does not stand. What we need is increased monitoring and demand for good products. I do not see any other alternative. If you can suggest an alternative, let me know. 1 Like 1 Share |
Re: Currency Deal With China: Things To Know by Ratello: 3:23pm On Apr 15, 2016 |
Firefire:You are on course Sir, this is how human beings reason. 1 Like |
Re: Currency Deal With China: Things To Know by Firefire(m): 3:24pm On Apr 15, 2016 |
ISpiksDaTroof: "becoming the clearing house for the Yuan in Africa", sounds good on the long-run, but what happens to our economy on the short-run? How can this deal help close the BOP deficit widen by the reduced oil revenue and help remove Nigeria from the mono-cultural economy ? |
Re: Currency Deal With China: Things To Know by 989900B: 3:25pm On Apr 15, 2016 |
Just so we set some things straight for the naysayers: 1. If we have xbillion amount of dollars in our reserves, it does not literally mean it's all in US dollars. 2. Even from before, we did keep some Yuan in our 'basket of currencies'. 3. We keep other currencies like GBP, Euro and some few other currencies, and gold too, they are all part of the 'reserves'. 4. We are only increasing our Yuan reserves, and trading directly, rather than going via the $ route (which is a better thing for our economy, considering we have a huge trade volume to and from China . . . times are changing, it's not like the 70s,80s, or 90s . . . the world's trade and ours from then has greatly changed. We can't be applying the monetary policies of 30 years ago in a fast evolving world -- we've gotta evolve with it). 5. China is fast becoming the country with the most investments in Africa, with Nigeria one of it's favourite destination. 6. ATM, the dollar is too strong for it's own good, and the US is worried about that too -- they'r slowly feeling the effect. 7. With the huge trade volume between both countries, it's actually stark insanity NOT to do what PMB just did with China. 8. China's loan rates are one of the cheapest in the world -- every one is borrowing from them -- the UK owes them BILLIONS ($), the US borrowed TRILLIONS ($) from them! 9. China's investment in Africa and Nigeria is estimated to triple in few years. 10 Having a good chunk of our reserves in Yuan, with the amount of imports from there, would help ease the pressure between the Naira and the dollar. For those who worry about local manufacturing and diversification of the economy, the deal with China as regards major projects such as the 4,000 MW power plant amongst other alternative power solutions, and railway, and refineries, are just the ingredients you need to diversify. ATEOTD, it is more about policies/laws, leadership and accountability, and if we get it right even them Chinese factories we buy from, will relocate here. 6 Likes 1 Share |
Re: Currency Deal With China: Things To Know by Nobody: 3:25pm On Apr 15, 2016 |
LemonBoy1:First and foremost i am nt a brother....secondly, try reading papers cos u won't get all the loan info on nairaland. *winks*. 1 Like |
Re: Currency Deal With China: Things To Know by jpphilips(m): 3:25pm On Apr 15, 2016 |
Seun: Nigeria is taking a loan for infrastructural development not for the funding of FXR, I am yet to read it anywhere 1 Like |
Re: Currency Deal With China: Things To Know by Nobody: 3:26pm On Apr 15, 2016 |
ISpiksDaTroof: Your comment is moronic. |
Re: Currency Deal With China: Things To Know by ISpiksDaTroof: 3:31pm On Apr 15, 2016 |
Empero1: You are poor and weak, China is rich and powerful and you expect to be equals at the negotiation table?! Are you alright? If anything you have to grateful to God for the kind of man President Buhari is for getting your country this sort of deal. Imagine if GEJ was still in power; he would've sold your country out in 10trillion different ways while also stealing whatever loan was offered the nation. 4 Likes 1 Share |
Re: Currency Deal With China: Things To Know by Eluwilussit(m): 3:32pm On Apr 15, 2016 |
Emekamex: We are about to be scammed by China. We will wake up one morning and all our reserve in yuan is worthless. How do we believe that another nation will help us build our economy? China is in all of this for profit. If as alleged, pmb spends $1m each trip, the money spent on over 20 foreign trips will go along way in providing some infrastructure. I had hoped he would cut down our overhead and be cautious in his spending. So far, it is still soldier go, soldier come. Fela was so right. The more things change, the more they remain the same. ![]() |
Re: Currency Deal With China: Things To Know by Firefire(m): 3:33pm On Apr 15, 2016 |
TheGoodJoe: "It is in this trade logic that an increased take-up of the yuan as a settlement currency can be envisaged in Africa, with a view to increase the value of Africa’s bilateral trade with China and that of the infrastructure projects funded by Chinese loans. China accounts for about 20% of imports in Sub-Saharan Africa and about 15% of its exports. But using the yuan as a settlement currency makes the most sense in the sixteen African countries that send more than 20% of their exports to China and even more so in the seven, including Sierra Leone, Eritrea, Republic of Congo, Angola and Sudan, for which China accounts for 40% of total exports". http://www.afrikareporter.com/why-the-adoption-of-the-chinese-yuan-as-a-reserve-currency-in-africa-is-causing-a-stir/ You only gain correspondently, if you import 40% from China, you likewise export 15-20% to the same country. But in the case of Nigeria, we only continue to import, and settle the massive loans + interest without any corresponding cushion from export proceeds. 1 Like |
Re: Currency Deal With China: Things To Know by chuksmad(m): 3:33pm On Apr 15, 2016 |
VocalWalls:Try to understand the implication, what we are saying is that with conversion to Yuan directly for importers, the pressure on dollar demand will reduce. The only thing i see here is that Government is trying to reduce the demand for dollar, that will not reduce the exchange rate of dollar to Naira |
Re: Currency Deal With China: Things To Know by justmenoni: 3:34pm On Apr 15, 2016 |
Op will there be bank rate and black market rate for the yuan cos to me this is the main problem with dollars,euro and pounds..i mean how can bank get at 199 and sell to you at 350 1 Like |
Re: Currency Deal With China: Things To Know by jpphilips(m): 3:37pm On Apr 15, 2016 |
aloeman15: ![]() ![]() ![]() ![]() ![]() ![]() ![]() 2 Likes |
Re: Currency Deal With China: Things To Know by ISpiksDaTroof: 3:37pm On Apr 15, 2016 |
herbie27:So, why are most schools in your country roofless? Why are the drainages relics of medieval 1st century Europe? Why are most roads substandard? Don't you have the "expertise" to do these simple things? 1 Like |
Re: Currency Deal With China: Things To Know by Chommieblaq(f): 3:38pm On Apr 15, 2016 |
Seun: You the only person seeing these transaction the way am seeing it. Imagine signing that kind of agreement with China, that devalues their currency every now and then (that how they stay on top). There will be no room for competition if China takes over our infrastructure repairs. Honestly I don't like this at all buh am hoping for the best. |
Re: Currency Deal With China: Things To Know by focus7: 3:40pm On Apr 15, 2016 |
Seun:Seun I don't mind your ban, you can even make it a life ban but I must tell you that you don't have sense. 4 Likes |
Re: Currency Deal With China: Things To Know by ISpiksDaTroof: 3:42pm On Apr 15, 2016 |
TheRealGEJ:I'm pretty sure you weren't shortsighted when I told Seun I don't have the patience to start explaining this deal in layman terms. Read my posts and you'll have an idea. Meanwhile, your friends are waiting for you in the Romance Section. 1 Like |
Re: Currency Deal With China: Things To Know by hab1612(m): 3:43pm On Apr 15, 2016 |
[s] Dmillionaire:[/s] We have hope in HIM. NOT all leaders are there to steal. give him the benefit of dought. we did so to the past leader? NO B SO? Dmillionaire giv him the benefit lik u did to others den after crucify him ko bi ko. Rome! na one day dy build am? tal less of Nigeria wey don almost crash. |
Re: Currency Deal With China: Things To Know by Classiqharry: 3:45pm On Apr 15, 2016 |
2rutalk1: The question you should ask yourself is do we currently have the platform or enabling environment to be export based as you have suggested, the answer Is No. We have to first build our infrastructures and do we have the expertise to do that on our own, the answer again is No! So please let's sign this contracts with people that can help us and thereafter if subsequent Govt feel we are now capable they can review the contract with China. The truth is that we Nigerians assume what we are not, ordinary decent artisans like bricklayers and painter's, we have to import cotonou boys if you want a perfect job and you are here complaining losing to China. 4 Likes |
Re: Currency Deal With China: Things To Know by Nobody: 3:46pm On Apr 15, 2016 |
ISpiksDaTroof: Sharap! What gives you the guts to ask if I'm alright! Now, to the bone of contention, I wonder where you get the idea that we're "poor and weak" obviously, you're not a good student of diplomacy. With the abundance of natural resources that abounds in this great country, the word poor shouldn't be associated with us- China as an enterprising and industrialized country need what we have in this regard and vise versa. More so, with the intellectual resources available to us, we shouldn't be ascribed with the word weak- a sound diplomatic ground work is all we need to get things right at this juncture. I'm a seasoned bureaucrat... an international acclaimed one at that, I have always help different many countries to get the best of deals from their counterparts without letting the initiator of the deal to subject itself to perpetual slavery in the hand of its associate country. By the way, there's something called trade by barter. Anyway, my service is not for free, so for more information contact me privately. 4 Likes |
Re: Currency Deal With China: Things To Know by modath(f): 3:46pm On Apr 15, 2016 |
989900B: Gbam! Gbammer Gbammest! ![]() 3 Likes |
Re: Currency Deal With China: Things To Know by Firefire(m): 3:47pm On Apr 15, 2016 |
I always enjoy your line of argument. Impressive, not the junks Ngene is forcing down our throats. As you rightly argued, "... it is more about policies/laws, leadership and accountability, and if we get it right..." I pray we get it right this time. I also expect our leaders to have study other African countries with similar move, how effective was it? 989900B: |
Re: Currency Deal With China: Things To Know by TheGoodJoe(m): 3:51pm On Apr 15, 2016 |
Firefire: With or without the loan, we are still going to import in large quantities. This means that without the loan, our dollar reserves diminishes. So why not sign a Currency Swap deal that continues the importation, reduces the pressure on the reserves and boost our infrasructures. The boost in infrasructures will result in more local productivity due to more jobs, power and our Refineries can result in export of refined Petroleum Products. |
Re: Currency Deal With China: Things To Know by LemonBoy1: 3:51pm On Apr 15, 2016 |
herbie27: sorry sister |
Re: Currency Deal With China: Things To Know by Mike008(m): 3:52pm On Apr 15, 2016 |
Me no know the economics involved here o. People who claim to know are only claiming to know without actually knowing because their comments are vague. Whatever this means, I believe its a good move. China is worlds 2nd largest economy, and any business with them is good business. |
Re: Currency Deal With China: Things To Know by Nobody: 3:52pm On Apr 15, 2016 |
ISpiksDaTroof:You jst have a myopic view of ur Nation and i wasn't suppose to grace that with my comment. These things you listed here are wat unskilled nigerian labourers would do. |
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