China trip step in right direction

I think the recent China trip should be commended and I say this because President Muhammadu Buhari and Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele moved closer to actualizing their promise to strengthen the Naira against the Dollars by signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd. […]

I think the recent China trip should be commended and I say this because President Muhammadu Buhari and Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele moved closer to actualizing their promise to strengthen the Naira against the Dollars by signing a landmark currency deal with the Industrial and Commercial Bank of China Ltd.
The agreement will allow Nigerian traders and businesses, which imports mainly from China, conclude their transactions in the Chinese currency, the Renminbi (Yuan), instead of the Dollar.
Until now, over 90 per cent of international trades between Nigeria and the world were conducted in Dollars and in the process putting a lot of pressure on the Naira. Nigeria imports almost all it needs from the
West, Middle East and Asia.
The CBN is expected to diversify a huge chunk of Nigeria’s foreign reserve from the Dollars to the Yuan to perfect the agreement.
One statement that I found commendable was the one from Lin Songtian, director general of the African affairs department of China’s foreign ministry, who said, “It means that the renminbi (Yuan) is free to flow among different banks in Nigeria, and the renminbi has been included in the foreign exchange reserves of Nigeria”.
China has signed currency swap deals with countries ranging from Kazakhstan to Argentina, as it promotes wider use of its Yuan.
 Nigeria would also become the clearing house for Yuan denominated transactions for the whole of Africa, following the agreement.
  Usman Mohammed.
Department of Mass Communication, IBB University, Lapai-Niger State. 07060815443