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Reps urge FGN to accelerate adoption of Chinese currency

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Reps urge FGN to accelerate adoption of Chinese currency

The House of Representatives has urged the Federal Government and the Central Bank of Nigeria to expedite the adoption of the Chinese Yuan as a viable alternative trading currency.

This plea comes as a resolution passed on Wednesday, following a motion presented by Jafaru Leko.

In light of the Federal Government’s bilateral currency swap agreement announcement with China, Neptune Prime highlights the House’s call for prompt action.

Leko, in his motion, emphasized the need for Nigeria to embrace the Chinese Yuan amidst the challenges faced by the Naira against major Western currencies.

READ ALSO: Chinese Yuan strengthens to 6.6607 against dollar Tuesday

He proposed the inclusion of the Yuan in Nigeria’s foreign reserves, stating, “Adopting the Chinese Yuan as an additional foreign exchange reserve currency might alleviate the adverse effects of Naira depreciation, reduce the risks associated with exchange rate fluctuations, and enhance Nigeria’s economic stability.”

Highlighting China’s prominent global economic role, Leko argued for the strategic integration of the Yuan.

In response to the motion’s adoption, the House resolved that the committees on Banking Regulations, Banking, and other Ancillary Institutions collaborate with the Central Bank of Nigeria to explore appropriate mechanisms for the swift implementation of the 2018 agreement on the Yuan.

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