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Nairaland Forum / Nairaland / General / Politics / Deal On China Yuan Not Currency Swap, Says Minister (837 Views)
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Deal On China Yuan Not Currency Swap, Says Minister by austentero: 7:07am On Apr 21, 2016 |
Minister of Foreign Affairs Geoffrey Onyeama
has said the currency deal Nigeria signed with
China during President Muhammadu Buhari’s
visit was not a swap as widely reported.
He briefed State House correspondents
yesterday at the end of the Federal Executive
Council (FEC) meeting on the gains of the one
week visit.
According to him, the deal was a way for
Nigeria to benefit from the internationalisation
of the Chinese currency.
He said: “It’s not really a swap. What it takes
is that as the Chinese economy goes strong,
there is some pressure on them from the
trading partners, international financial
institutions. They agreed that the money
should be internationalised.
“So, they started that for a while. They were
protecting it also. They did not allow it to be
fully exchangeable. But now, their economy is
fully strong, they are looking for a way to
internationalise the currency. Now, they were
saying essentially that they wanted to segment
it.
“For Southern Africa, South Africa is going to
be the sort of a hub for the currency. So, they
are going to be the focal point for the Chinese
to make that available for trade in that area.
“In West Africa, they are looking for a hub.
Ghana is interested in being the hub for the
currency, to circulate it for those who want to
use it. It is not compulsory. But Nigeria is a
bigger country with bigger economy. So that
does make sense.
“And they became a kind of attracted to
Nigeria to be the hub.
“So, for us, the benefit is that it gives us small
flexibility. So, if Nigeria is buying Chinese
goods, for instance, it will in our interest to use
the Yuan because we know there is a lot of
squeeze for the dollar.
“But we still use the dollar. But if it not enough
and there are some people who want to invest
in the country, instead of crying that they
cannot take dollar out, there might be Yaun
that they would be happy to take out because
it is now internationalized as a currency and
they can use it. So, it gives us a much larger
option.
“As you know, a lot of importers now are
complaining that they are not able to access
the dollars to buy good and things like that.
So, if we have in addition to dollar, we have
Yaun, then they can also have that available.
“So, it has given us a greater opportunity for
our economy so that those people can also
now import not withstanding the shortage of
dollars.
“So, that is really what it’s more about rather
than a swap deal or any such thing.” He stated http://thenationonlineng.net/deal-china-yuan-not-currency-swap-says-minister/
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Re: Deal On China Yuan Not Currency Swap, Says Minister by shamack: 7:09am On Apr 21, 2016 |
Best of luck to our Economy.....everitin still cost sha |
Re: Deal On China Yuan Not Currency Swap, Says Minister by freeze001(f): 7:15am On Apr 21, 2016 |
These people should just call a press conference and brief Nigerians on the China trip and its expected impact. We need to also know what we stand to gain and possible liabilities as well as the Chinese side. We need to know if we're being ripped off or it's a good deal. All these piecemeal comments here n there will keep fuelling half-baked analyses with different people giving different opinions on different sets of facts! Today it's currency swap, tomorrow it isn't. Now it's a loan, later it's direct investment...and so on. There's just too much conjecture flying around and Nigerians deserve a clear picture of things to understand the economy and her leadership generally. 4 Likes |
Re: Deal On China Yuan Not Currency Swap, Says Minister by modath(f): 7:19am On Apr 21, 2016 |
So, if Nigeria is buying Chinese goods, for instance, it will in our interest to use the Yuan because we know there is a lot of squeeze for the dollar If it isn't a swap with China, what is it then called? “As you know, a lot of importers now are complaining that they are not able to access the dollars to buy good and things like that. So, if we have in addition to dollar, we have Yaun, then they can also have that available. “So, it has given us a greater opportunity for our economy so that those people can also now import not withstanding the shortage of dollars. “So, that is really what it’s more about rather than a swap deal or any such thing.” He stated Still the same thing, importers (the economy ultimately) won't lose out to the cross rates differentials... |
Re: Deal On China Yuan Not Currency Swap, Says Minister by Nobody: 7:20am On Apr 21, 2016 |
r u kidding me? |
Re: Deal On China Yuan Not Currency Swap, Says Minister by princemillla(m): 7:20am On Apr 21, 2016 |
Very simple to comprehend tho. Scavenging for dollars should reduce drastically 1 Like |
Re: Deal On China Yuan Not Currency Swap, Says Minister by modath(f): 7:25am On Apr 21, 2016 |
princemillla: You find it simple cos you are objective & open minded, watch as abuses & curses will fly from those with "comprehension" problems + pre conceived negativity mind set about this government's policies... They never disappoint.. 3 Likes |
Re: Deal On China Yuan Not Currency Swap, Says Minister by RoyalBlak007: 7:26am On Apr 21, 2016 |
Now what do.. ...we believe now
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Re: Deal On China Yuan Not Currency Swap, Says Minister by princemillla(m): 7:28am On Apr 21, 2016 |
modath: I no dey ooooo.... It's better one leaves them to where they belong |
Re: Deal On China Yuan Not Currency Swap, Says Minister by millhouse: 7:46am On Apr 21, 2016 |
Stories that touch |
Re: Deal On China Yuan Not Currency Swap, Says Minister by Mynd44: 7:46am On Apr 21, 2016 |
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