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  • Nigeria-China $2.5Billion Currency Swap—It’s Implications

    I was to write on the above topic  when I got this from an elderly friend, Elder Oguntimenhin. I am reproducing it below. Brief and cogent.

    MULTIPLIER EFFECTS OF NAIRA-YUAN SWAP

    Image result for china

    In case you don’t know the meaning of Nigeria Naira/Yuan swap with China … and why American government is desperately smoothing their relationship with Nigeria.

    This is a clearer picture of the deal and it’s effects on our economy and way of life.

    Soon, you may be buying that techno phone you bought at N80,000 for N12, 000 .

    The Central Bank of Nigeria have finally signed the currency swap deal we have been expecting for the past 2 years with the Chinese government.

    The importance of this is that since almost 70% of the goods we import come from China and Asia and only about a meagre 12% come from America, why must we use Dollars to transact with China?

    Thus, with the new deal, instead of using dollars at N350 to 1dollar to import those goods, we can now buy Yuan at 47 naira to 1 Yuan and import those stuffs directly. Therefore, Instead of buying these goods in dollars in China, we will now buy them in Yuan at 5 times cheaper than their dollar rates.

    Meanwhile, it should be noted that China is now the highest importer of our crude. This means that our trade with them can be on Naira/Yuan basis. Image result for china

    This is a giant stride that our media needs to disseminate. It’s a great achievement by this administration in its effort at repositioning our economy.

    This may be a reason why our past selfish leaders may not want Buhari to continue in office to protect their families who are beneficiaries of high forex rate.

    Of course, with d new deal, d demand for dollars will nose dive, with an attendant crash in its price.

    Advice. Now is the time to face China for business. Their products are chap but may not be of the same quality as I the west. More often than not, the low price pays for the lesser quality.

    You can start importation of fast moving items and sell in your locality. If yo buy 50 of this watch it China, one will cost N705 and you can easily sell them for N2000 or more. If you are interested in importation business let us talk at  https://naijabizideas.com 

    Otunba Jide omiyale

    Otunba Jide omiyale

    Chief Editor at Naija Biz Ideas
    I am Otunba Jide Omiyale. I run this site with other professionals,including Accountants, Lawyers, Commercial Bankers and Investment Bankers
    Otunba Jide omiyale

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