In a bid to bolster Nigeria’s economic stability and mitigate the challenges posed by Naira depreciation, the House of Representatives has called upon the Nigerian government and the Central Bank of Nigeria to expedite the adoption of the Chinese Yuan as an alternative trading currency.
The motion, instigated by Jafaru Leko and subsequently adopted on Wednesday, underscores the pressing need for Nigeria to embrace the Chinese Yuan amidst the struggle of the Naira against major Western currencies.
Notably, the Federal Government had previously unveiled a bilateral currency swap agreement with China, signifying a significant step towards integrating the Chinese currency into the Nigerian financial landscape.
Leko emphasized that incorporating the Chinese Yuan into Nigeria’s foreign reserve would serve as a pivotal safeguard against the adverse effects of Naira depreciation and exchange rate fluctuations. This move is envisioned to fortify Nigeria’s economic stability while diversifying its foreign exchange reserves.
Highlighting China’s formidable position in the global economy, Leko stressed the strategic significance of aligning Nigeria’s financial framework with the evolving dynamics of the international economic landscape.
In response to the motion, the House put forth a resolution tasking the relevant committees on Banking Regulations, Banking, and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria. Their mandate encompasses exploring and implementing the requisite mechanisms to expedite the execution of the 2018 agreement on the utilization of the Yuan.
This resolute call from the House of Representatives signals a pivotal juncture in Nigeria’s economic trajectory, as it strives to harness the potential benefits of diversifying its foreign exchange reserves and embracing the Chinese Yuan as an integral component of its economic framework.
