Nigeria Currency Exchange Deal With China, Good Or Bad?
The Central Bank of Nigeria (CBN) has finally signed the currency exchange agreement with the Chinese government that has been anticipating for the past two years.
The significance of this is that about 70% of the commodities we import originate from China and Asia, with the remaining 12% coming from the United States. Why do we have to use dollars to do business with China? Instead of utilizing dollars at N500 to one dollar to import those products, we can now buy Yuan for 47 Naira to 1 Yuan and import them directly.
There is a chance that some of those who stored foreign currencies in order to profit will unload them in order to avoid having a heart attack as a result of their massive loss as a result of the currency exchange deal with China.
Dollars and pounds will pour everywhere, but there will be no purchasers because the buyers would withdraw naira from their accounts in Chinese-based banks.
Our benefit is that instead of purchasing products in China in dollars, we will now purchase them in Yuan, which is five times cheaper in dollars.
What is your opinion on this? Let’s discuss
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