Speed up adoption of Chinese currency – Reps urge FG

The House of Representatives has urged the Federal Government and the Central Bank of Nigeria to speed up the adoption of the Chinese Yuan as an alternative trading currency.

This call was contained in a resolution adopted on Wednesday following a motion moved by Jafaru Leko.

The Federal Government announced a bilateral currency swap agreement between Nigeria and China.

In the motion, Leko urged the government to adopt the currency amidst the struggle of the naira against major Western currencies.

He said the government should adopt the currency as part of Nigeria’s foreign reserve.

“Chinese Yuan as an additional foreign exchange reserve currency might mitigate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability,” he said.

He argued that China had already assumed a leading role in the global economy.

Following the adoption of the motion, the House resolved that the committees on Banking Regulations, Banking, and Other Ancillary Institutions liaise with the Central Bank of Nigeria to explore the appropriate mechanisms to speed up the 2018 agreement on Yuan.